North America Crude Markets short-term outlook: July 2021

WTI prices reaching a high of $76 per barrel in June, a price not seen since 2014, was paired with a rapid drawdown in US inventories. Specifically, draw downs in the WTI pricing hub in Cushing supported WTI prices and tightened differentials to international benchmarks to levels not seen since 2017. In this outlook, we explore the fundamental forces driving US inventories lower and assess the impact on regional price differentials. This outlook also includes: • A new WCSB detailed supply and diluent demand outlook data deliverable • Review of storage fundamentals including record export loadings and rising US crude runs • A look at movements in inland storage hubs including Cushing and West Texas • A review of recent Cushing infrastructure developments.