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Storage — HORMUZ CRISIS

v2.9.2 · Apr 14
⚠ Storage Bifurcation
Global stocks fell 85 mb in March. But 100 mb of crude is trapped as floating storage behind Hormuz, and China added 40 mb to tanks. The world is draining while two pockets accumulate — a bifurcated storage picture that snaps back violently when the strait reopens.
0.965forced_storage_build — Cushing +14.3% (z=3.7) despite -77% roll yield. US crude trapped — can't export through freight-locked arb. The forced build at Cushing is the mirror image of the 85 mb global draw: US accumulates what the world can't get.
0.920regime_curve_destruction — M1-M12 -$22.61, roll -77%. The curve is begging for physical delivery that the strait blocks. Storage economics don't just not work — they're inverted. Holding crude costs $22/bbl/yr in roll alone.

The snap-back math: 100 mb floating behind Hormuz + 40 mb China additions + rerouted Cape cargoes arriving. When the strait reopens, potentially 150+ mb of crude hits the market within weeks. M1-M12 could swing from -$22 to flat or contango. The storage trade reverses from "nowhere to put it" to "nowhere to sell it."

Global Draw
-85 mb
Floating
+100 mb
China Add
+40 mb
Roll Yield
-77%
M1-M12
-$22.61
Cushing 7d
+14%
Crude Stocks
461.6
US Pctl
60th
Methodology Appendix

Tools used: term_structure (ICE Brent forward curve), seasonal (crude stocks / Cushing seasonality), latest (PET weekly stocks), derived_signals (contradiction scoring), compare_runs (run-over-run diff), IEA.OMR_HEADLINE (global stock changes, floating storage, China additions).

Data sources: ICE (Brent futures M1-M12), EIA PET (US weekly crude and product stocks), IEA Oil Market Report (global balances, floating storage estimates, China crude additions).

Contradiction methodology: Two storage-relevant contradictions are active. forced_storage_build (score 0.965) fires when Cushing builds rapidly (z-score > 2, 7-day change > 5%) despite deeply negative roll yield, indicating physical trapping rather than economic storage. regime_curve_destruction (score 0.920) fires when backwardation exceeds historical extremes (M1-M12 < -$15) while physical delivery is constrained — the curve prices scarcity that logistics cannot resolve.

Snapshot keys: ice_m1, ice_m12, m1_m12, roll_yield_pct, cushing_z, cushing_7d_pct, crude_seasonal_pctl, iea_global_stock_change_mb, iea_floating_storage_mb, iea_china_crude_additions_mb, regime, primary_dislocation, contradictions_active_count.

Unique angle: Storage bifurcation — global inventories are draining (-85 mb) while three pockets accumulate (100 mb floating behind Hormuz, 40 mb China strategic additions, Cushing forced builds). The bifurcation implies a violent snap-back when the strait reopens.

2/15 storage-relevant · Tools: term_structure, seasonal, latest(PET stocks), derived_signals, compare_runs, IEA.OMR_HEADLINE
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