Cushing crude oil inventories
EIA’s crude oil inventory report
On May 3, 2017, at 10:30 AM EST, the EIA (U.S. Energy Information Administration) will release its crude oil inventory report for the week ending April 28, 2017.
For the week ending April 21, 2017, the EIA reported that Cushing crude oil inventories fell by 1.2 MMbbls (million barrels) to 67.4 MMbbls—compared to the previous week. Inventories fell 1.8% week-over-week, but rose 1.7% year-over-year.
Cushing’s storage capacity
Cushing, Oklahoma, is the delivery point for crude oil futures contracts trading on NYMEX. It’s also the largest crude oil storage hub in the US. Cushing’s crude oil storage capacity is 73 MMbbls.
As you can see in the above graph, crude oil (XLE) (XOP) (USO) prices and inventories have an inverse relationship. Cushing crude oil inventories hit the highest level of 69.4 MMbbls in the week ending April 7, 2017. Inventories have risen by ~9 MMbbls, or ~14%, in the last 22 weeks. Near-record Cushing crude oil inventories could pressure crude oil prices.
Next, we’ll analyze the US crude oil rig count last week.