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Oil Tumbles Amid Storage Concerns As Genscape Reports Cushing Build
What goes up on nothing but a short-squeeze, must come down on fundamentals. Following yesterday's DOE report of a nother build at Cushing (which followed API's report of another build at Cushing), Genscape has just reported another large build at Cushing (+503k barrels)... the storage wars are back.
And the result...
As we detailed previously, Genscape joins the ever louder chorus that the US is approaching the capacity tipping point:
Further, Genscape adds that when looking specifically at Cushing, the storage facility is virtually operationally full (or at 80%) with just 4-5 more months at current inventory build left until the choke point is breached, and as we have reported previously, storage requests for specific grades being denied however the silver lining is that there is a lot of open pipeline space from Cushing to gulf coast (their full presentation can be watched here).
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For those interested, the Genscape presentation can be watched in its entirety below