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Cushing Crude Oil Inventories Fell for 10th Consecutive Week

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Aug. 1 2017, Published 2:21 p.m. ET

Cushing inventories 

A market survey estimates that Cushing crude oil inventories fell from July 21–28, 2017. Cushing crude oil inventories are at their lowest level since November 6, 2015, falling for the tenth consecutive week. The expectation of a fall in Cushing inventories has a positive impact on crude oil (BNO) (XES) (IEZ) prices.

Moves in crude oil (XLE) (XOP) prices impact oil and gas producers such as Noble Energy (NBL), Bill Barrett (BBG), and Bonanza Creek Energy (BCEI).

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EIA’s crude oil inventory report 

On August 2, 2017, the EIA (U.S. Energy Information Administration) will release its weekly crude oil and gasoline inventory report. In its last report, Cushing inventories fell 1.7 MMbls (million barrels) to 55.8 MMbbls for the week ended July 21, 2017. Inventories fell 2.9% for the week ended July 21, 2017, compared to the previous week. They’ve fallen 14.4% from the same period in 2016.

US crude oil inventories

US crude oil inventories have fallen 10.0% from their peak in March 2017. Inventories fell 7.2 MMbbls to 483.4 MMbbls from July 14–21, 2017. Inventories also fell below the five-year range, the lowest level since January 6, 2017. For more on US crude oil inventories, read US Crude Oil Inventories Fell below the 5-Year Average.

Impact of falling Cushing inventories

Cushing crude oil inventories have fallen for the 14th time in the last 15 weeks. They’ve fallen ~21.0% from their all-time high. Summer weather usually drains inventories due to high demand. It would help US crude oil (USL) (SCO) prices. Higher crude oil prices benefit oil producers such as Bill Barrett (BBG) and Bonanza Creek Energy (BCEI).

Next, we’ll analyze US crude oil rig counts for July 2017.

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