U.S. Gulf Coast Oil Supply Pile-Up Is Only Temporary
- Capline linefill is sending more crude to the Gulf Coast
- Demand from Asian buyers buoying U.S. crude oil exports
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Crude inventories are swelling on the U.S. Gulf Coast, but the pile-up won’t last for very long.
Supplies have surged by nearly 20 million barrels so far in October, the most for this month in at least a decade, on the reversal of Capline pipeline and as more barrels are pulled to the region for export due to demand from Asia. But refiners are beginning to ramp up operations after maintenance and that should lead to stockpile declines.