While the crude storage at Cushing, Oklahoma is reported to be nearing capacity, some reports indicate the total commercial crude storage capability could be hit in mid-May.
Exports have plunged 30% and the mid-May prediction came in a recent letter sent by Plains All American Pipeline to the Texas Railroad Commission.
The letter was in advance of Tuesday’s meeting of the commission where it might consider a request by some companies to mandate a prorationing of oil production in the state. The request comes as production cuts and shut-ins are being made across the country.
Plains already had asked crude oil producers in late March to initiate output reductions so nationwide storage would not be filled thus causing an even deeper crash of U.S. oil prices.