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.
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.
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.