Record U.S. Oil Glut May Fill Storage, Cut Prices
Is Oil Facing a Storage Problem in the U.S.?
This article is for subscribers only.
A record surplus in U.S. crude inventories may soon strain the nation’s storage capacity, renewing a slump in prices and curbing its output, according to the International Energy Agency.
The IEA boosted estimates for U.S. oil production this year as cutbacks in drilling rigs have so far failed slow its output. Crude inventories threaten to fill tanks, with the nation’s largest oil-storage hub in Cushing, Oklahoma 70 percent full, the agency said. The IEA raised its 2015 estimate of global oil demand by the most since it was introduced in July.