Oil inventories in Cushing floods soon over. New extensions may lower oil prices further, writes Dagens Næringsliv.
In the middle of countryside in the state of Oklahoma saved 80 million barrels of oil in giant tanks. The reference price for US light crude, WTI, determined there and ttallrike oil pipelines tied together before transport sends oil on to refineries along the coast.
In anticipation of higher prices, however, many choose to store oil in the fields instead of sending it to the refinery.
– We are “sold out.” All our storage capacity is rented, says Bill Pool, who is director of Enbridge, which has a quarter of Cushing oil thigh in their area.
The depots are according to the newspaper so full that experts fear that the US might go out of storage space. Several companies are planning expansion, which could weigh on oil prices further.
– We are prepared to meet increased demand from the market if the need should arise. We have available land, says Pool, which has increased capacity by one million barrels in the last three years.
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