API’s Cushing crude oil stocks
Data intelligence company Genscape stated that Cushing crude oil stocks rose by 1.5 MMbbls (million barrels) for the week ending April 22, 2016—compared to the previous week. The API (American Petroleum Institute) reported that Cushing crude oil stocks fell by 0.24 MMbbls for the week ending April 15, 2016—compared to the previous week. For more on nationwide API crude oil stocks, read the previous part of the series.
EIA’s Cushing crude oil inventories
The EIA (U.S. Energy Information Administration) reported that Cushing crude oil inventories fell by 0.25 MMbbls to 64.3 MMbbls between April 8, 2016, and April 15, 2016. Cushing crude oil inventories hit the highest level of 67.5 MMbbls for the week ending March 11, 2016. Cushing crude oil stocks fell for the fourth time in the last five weeks.
Cushing crude oil inventory storage capacity
Cushing, Oklahoma, is the largest crude storage hub in the US. It’s also the delivery point for NYMEX-traded crude oil futures contracts. Its crude oil storage capacity is 73 MMbbls. The stocks at Cushing are close to record levels due to new pipelines coming online in 2014 and 2015.
Impact of near-record Cushing crude oil inventories
Cushing crude oil inventories are 3.4% more than the same period in 2015. Near-record Cushing crude oil stocks could add pressure to crude oil prices. Multiyear low oil prices impact oil producers like Ultra Petroleum (UPL), Whiting Petroleum (WLL), Energy XXI (EXXI), and Goodrich Petroleum (GDP).
The roller coaster ride in crude oil prices impacts ETFs like the ProShares Ultra Oil & Gas (DIG), the Direxion Daily Energy Bull 3x Shares ETF (ERX), and the ProShares UltraShort Bloomberg Crude Oil ETF (SCO).
Read more about the US crude oil rig count in the next part of the series.