Crude oil inventories at Cushing, Oklahoma decreased 13 million barrels (32%) over the last two months. The site at Cushing is the primary crude oil storage location in the US.
On 21st March, inventories at Cushing were less than 29 million bbls, more than 20 million bbls lower than a year ago, and the lowest level since the beginning of 2012.
The recent drawdown of stocks at Cushing can be attributed to the following three factors:
- The start-up of TransCanada's Cushing Marketlink pipeline, which is now moving crude oil from Cushing to the US Gulf Coast.
- Sustained high crude oil runs at refineries in Petroleum Administration for Defense Districts (PADD) 2 (Midwest) and 3 (Gulf Coast), which are partially supplied from Cushing.
- Expanded pipeline infrastructure and railroad shipments that have made it possible for crude oil to bypass Cushing storage and move directly to refining centers in PADDs 1 (East Coast), 3 (Gulf Coast), and 5 (West Coast).
Despite the considerable decline in Cushing inventories, crude oil stocks remain above the top of the 2005 - 2008 range.
Adapted from EIA press release by Katie Woodward
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/28032014/crude_inventories_down_at_cushing_314/