Oil Tanks Are Running Dry at Biggest US Crude Storage Hub
- Cushing stockpiles low enough to threaten normal operations
- Refinery maintenance work expected to slow drawdowns
The Enbridge Inc. Cushing Terminal in Cushing, Oklahoma.
Photographer: Shame Bevel/Bloomberg
Crude tanks at the largest US storage hub and the pricing point for millions of dollars worth of oil contracts are running dry, threatening their ability to operate normally and sending prices for near-term supplies surging.
Stockpiles at Cushing, Oklahoma — the delivery point for benchmark US crude futures — tumbled below 22 million barrels last week, the lowest since July 2022, according to government data released Wednesday. Stockpiles have dropped for seven straight weeks and and now sit just above seasonal lows last seen in 2014. At these levels, many traders consider inventories to already be at the lowest levels that allow tanks to function normally.