A preliminary survey estimates that Cushing crude oil inventories could have fallen between June 16, 2017, and June 23, 2017. Inventories fell for the ninth time in the last ten weeks. The expectation of fall in inventories could benefit US crude oil (ERY) (ERX) (BNO) prices this week.
EIA’s crude oil inventory report
In the previous report, the EIA reported that Cushing crude oil inventories fell by 1.08 MMbbls (million barrels) to 61.1 MMbbls for the week ending June 16, 2017. Inventories fell 1.7% week-over-week and 6.2% year-over-year.
Cushing is the largest crude oil storage hub in the US and the world. It represents 16% of the US crude oil storage capacity. Cushing’s storage capacity is at 73 MMbbls. It’s the delivery point for West Texas Intermediate crude oil futures trading on NYMEX.
Cushing crude oil inventories hit the peak level in April 2017. Inventories have fallen 11% from the peak. The fall in Cushing crude oil inventories could support crude oil prices. Read What US Crude Oil Inventories Mean for Oil for more on US crude oil inventories.
Next, we’ll analyze the US crude oil rig count last week.