Empty Oil Tanks at Key Storage Hub Show Speedy Demand Rebound
- Crude oil storage tanks available starting July in Cushing
- Drillers still sticking to capital discipline, curbing output
Workers at an oil storage tank in Cushing, Oklahoma.
Photographer: Shane Bevel/Crude storage tanks that were brimming a year ago when the pandemic grounded flights and kept drivers at home are beginning to empty in the main U.S. distribution hub, the latest sign of strengthening demand in the world’s biggest oil-consuming country.
For the first time since before the pandemic, empty tanks are being offered for lease at Cushing, Oklahoma, the delivery point for West Texas Intermediate oil futures. At least 1.4 million barrels of storage is up for rental starting in July, for roughly 12 cents per barrel a month, said Steven Barsamian, chief operating officer at storage brokerage Tank Tiger. That’s a stark contrast to at least 60 cents charged when there was little space left about a year ago.