• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 15 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 2 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 6 hours Wind droughts
  • 5 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 1 day Xi Is Set To Be Re-Elected As China’s Leader
  • 9 days Oil Prices Fall After Fed Raises Rates
  • 4 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 5 hours Australian power prices go insane
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 hours Europeans and Americans are beginning to see the results of depending on renewables.
Razor-Thin Spare Capacity To Keep Oil Prices Elevated

Razor-Thin Spare Capacity To Keep Oil Prices Elevated

Supply disruptions from the Covid-19…

Oil Jumps On EIA Inventory Data

Oil Jumps On EIA Inventory Data

Crude prices rose on Wednesday…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Low Cushing Inventories Could Lead To Higher Oil Prices

Crude oil inventories at Cushing, Oklahoma—the designated delivery point for WTI Crude oil futures contracts—have been falling for the past four weeks, reaching what could be uncomfortably low levels and pointing to a potential further upside for oil prices.

In the latest reporting week to January 28, the U.S. Energy Information Administration (EIA) said that Cushing crude inventories fell to 30.5 million barrels, down by 1.2 million from the previous week. Cushing inventories are now down by 37.3 percent compared to this time of the year in 2021.

Crude inventories dropped from 37.3 million barrels on December 31, 2021, to just over 30 million barrels as of January 28, EIA data showed.

Traders are betting heavily that those levels would further drop when the EIA reports inventories this week, and probably further decline throughout February, Bloomberg Opinion columnist Javier Blas notes.

Shrinking Cushing inventories could push oil prices higher in the coming weeks. Due to operational reasons, crude at Cushing cannot really reach zero, so the perceived “tank bottoms” is when inventories drop below 25 million barrels, Bloomberg’s Blas notes.

It’s not a given that crude inventories at Cushing will reach the so-called “tank bottoms”—upcoming refinery maintenance in the United States could drop the drawdowns.

Nevertheless, low levels of physical crude at the delivery point for WTI Crude oil futures contracts is still a bullish sign for the oil market.

After hitting $92 a barrel on Friday, WTI Crude fell on Monday morning by 1.21% at $91.19 as of 10:25 a.m., and Brent Crude was down 0.53% at $92.83, amid signs of possible progress in the nuclear talks aimed at bringing the United States and Iran back to the so-called Iran nuclear deal.

On Friday, the U.S. Administration restored sanction waivers allowing Iran international cooperation for civil nuclear purposes. This was interpreted as a positive signal from the so-far difficult talks, which, if successful, would lead to the U.S. removing sanctions on Iranian oil exports.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News