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Crude Oil Prices Gain on Lower US Production Growth (Part 6 of 11) (Continued from Part 5) Cushing inventories
Cushing, Oklahoma, is the delivery point for NYMEX crude futures contracts. It’s where a lot of crude supply sources meet a lot of the crude demand sources. So, monitoring inventory levels at Cushing is a very important part of understanding what’s going to happen to WTI (West Texas Intermediate) prices.
Crude inventories at Cushing have continuously risen since October 2014, when stocks were close to ~19 million barrels. Last week, stocks at Cushing increased by ~2 million barrels, to 56.3 million barrels. These levels are the highest among EIA data going back to April 2004.
To put things further into perspective, consider that according to the EIA, Cushing has about 71 million barrels of crude oil storage. The current storage is about ~80% of the storage capacity, as per the EIA. The highest utilization record at Cushing was 91%, which was set in March 2011.
Given that inventories have been continuously rising for the past five months, this growth heightens the possibility that Cushing will soon approach full capacity.
If the oil hub reaches its full storage, oil prices could tumble further, which in turn would hurt the margins of companies such as Chevron (CVX), Whiting Petroleum (WLL), Concho Resources (CXO), and ExxonMobil (XOM). CVX and XOM are components of the iShares Global Energy ETF (IXC), and they make up 22% of the ETF.
Continue to Part 7 Browse this series on Market Realist:
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Whiting Petroleum Corporation
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CODE : WLL |
ISIN : US9663871021 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Whiting Petroleum is a oil producing company based in United states of america. Whiting Petroleum is listed in Germany and in United States of America. Its market capitalisation is US$ 6.2 billions as of today (€ 6.1 billions). Its stock quote reached its highest recent level on August 22, 2008 at US$ 99.26, and its lowest recent point on April 03, 2020 at US$ 0.25. Whiting Petroleum has 90 927 193 shares outstanding. |