FILE PHOTO: Crude oil storage tanks are seen in an aerial photograph at the Cushing oil hub in Cushing, Oklahoma, U.S. April 21, 2020. REUTERS/Drone Base
Crude oil futures for March rose on Monday as information was released showing increased crude oil inventories at the Cushing storage hub in Oklahoma. They are more than 80% of the hub’s storage capabilities.
Reports indicate the levels are close to those of April 2020 when the inability of investors to store their oil led to an historic plunge of West Texas Intermediate prices.
Cushing, the designated delivery point for NYMEX crude oil futures contracts saw commercial stocks increase to 61.6 million barrels in early November which is about 81% of its capacity of 76 million barrels. So reports the Energy Information Administration which indicated the amount is an increase from 60.4 million barrels at the hub the previous week.
It was also a 39.3% increase over the same week of 2019 when there were 44.2 million barrels in storage at Cushing.
Last May, Cushing inventories were at 83% of the capacity as more than 65 million barrels were on hand in the massive storage tanks.
By June 2020, the inventories fell to more than 45 million, but began rebuilding in July of last year.