Cushing Crude Inventories Hit 2014 Low, Approaching Minimum Operational Levels
Crude oil inventories at the Cushing, Oklahoma hub fell for the eighth consecutive week, dropping by 1.6 million barrels to 20 million barrels, the lowest since 2014. The Strategic Petroleum Reserve also fell to its lowest since 1983.
Commercial crude oil inventories at Cushing, Oklahoma—the largest US storage hub and pricing point for WTI crude—declined by 1.6 million barrels last week, bringing total stocks to 20 million barrels. This is the lowest level recorded since 2014 and marks the eighth straight weekly draw, with a cumulative decrease of 8.3 million barrels over the period.
At current levels, Cushing holds less than two days’ worth of US crude production. Operational difficulties and higher extraction costs typically arise once inventories fall below the ~20 million barrel threshold due to technical pumping constraints and potential quality deterioration from water and sediment buildup.
Separately, the Strategic Petroleum Reserve now stands at approximately 340 million barrels, the lowest since 1983, following the release of 172 million barrels intended to curb war-driven fuel price increases. The combination of depleted commercial and strategic stocks points to historically tight conditions in the US oil market.
Source: The Kobeissi Letter