May 31, 2012 [OPIS] - Working crude oil storage capacity at Cushing, Okla., continues to rise as expected as a result of a rush to build more terminals to meet growing demand.
As of end-March 2012, working oil storage capacity at Cushing rose 6.89% from the level seen at end-September 2011, according to the latest data issued by the Energy Information Administration (EIA).
Working capacity is now at 61.928 million bbl. OPIS reported on May 11 that oil traders estimated the maximum operational capacity to be much higher than the EIA estimate at 65 million-71 million bbl.
Traders’ estimates include industry surveys on the landscape of storage facilities at Cushing. The latest Cushing storage capacity data is issued by EIA every six months.
The maximum shell capacity as of end-March rose 12.17% from end-September 2011 to 74.596 million bbl, according to EIA.
However, traders expect the maximum shell capacity to have increased to at least 77 million bbl. Cushing crude stock has reached a record high of 46.795 million bbl for the week ended May 18 due to increasing Midcontinent production as well as robust Canadian imports.
The Cushing inventory level is expected to continue to rise in the future, but the start-up of the Seaway pipeline reversal in mid-May should help slow down that stock increase.
——————
Cushing’s Storage Facilities in Tankterminals.com: Centurion, Enbridge, Enterprise, Magellan, Plains All American Pipelines, Rose Rock, Blueknight Energy, Gavilon
