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Cushing Inventories Are near a 12-Week High

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Cushing inventories  

The EIA estimates that Cushing inventories increased by 0.4 MMbbls (million barrels) to 35.7 MMbbls on April 20–27. Cushing inventories also rose for the seventh time in eight weeks. However, the inventories dropped by ~31 MMbbls or 46% YoY (year-over-year).

WTI crude oil futures fell 0.1% on April 20–27. The iShares Global Energy ETF (IXC) and the Energy Select Sector SPDR ETF (XLE) rose ~0.5% and 0.7% on April 20–27. IXC targets to follow an index of global equities in the energy sector. XLE aims to follow the Energy Select Sector Index. Range Resources (RRC), Concho Resources (CXO), and EQT (EQT) account for 2.8% of XLE’s holdings. Range Resources and EQT rose ~1.5% and ~5.5%, respectively, on April 20–27. Concho Resources fell 1.1% on April 20–27.

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US crude oil inventories  

US crude oil inventories increased by 6.2 MMbbls to 435.9 MMbbls on April 20–27. However, the inventories declined by 91.8 MMbbls or ~17.4% from a year ago. The inventories also dropped ~18.5% from the record high hit on March 31, 2017.

Impact 

Cushing inventories dropped ~48.4% from the record high reached on April 7, 2017. However, Cushing oil inventories were near a 12-week high. Another rise in Cushing inventories could pressure crude oil prices this week.

Next, we’ll discuss US crude oil exports.

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