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Cushing Inventories Increased 23% in the Last 4 Weeks

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Apr. 9 2018, Updated 3:20 p.m. ET

Cushing inventories  

Analysts estimate that Cushing inventories could have increased on March 30–April 6, 2018. A larger-than-expected rise in Cushing inventories could pressure oil prices.

WTI oil futures fell 2.3% to $62.06 per barrel on April 6, 2018. The iShares Global Energy ETF (IXC) and the Energy Select Sector SPDR ETF (XLE) fell ~1.2% and ~1.8%, respectively, on April 6, 2018. XLE aims to follow the Energy Select Sector Index. IXC aims to track an index of global equities in the energy sector.

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EIA’s Cushing inventories

According to the EIA, Cushing inventories increased by 3,666,000 barrels to 34.89 MMbbls (million barrels) on March 23–30, 2018. Cushing inventories increased 23% in the last four weeks. However, Cushing inventories have dropped by 34.2 MMbbls or 50% year-over-year.

US crude oil inventories 

US oil inventories decreased by 4.6 MMbbls to 425.3 MMbbls on March 23–30, 2018. The inventories also declined by 110.2 MMbbls or 20.6% from a year ago. The inventories dropped ~20.6% from the record high reached on March 31, 2017.

Impact  

Cushing inventories dropped ~50% from the record high reached on April 7, 2017. Since then, WTI oil prices have increased ~19%. The United States Oil ETF (USO) aims to track the performance of WTI oil futures. USO has gained ~14.1% since April 7, 2017.

However, Cushing oil inventories were near an eight-week high. An additional rise in Cushing inventories could pressure crude oil prices this week.

Next, we’ll discuss US crude oil rigs.

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