U.S. Oil Stocks at Cushing Delivery Hub Hit 2-Year Peak
06.23.2023 By TankTerminals.com News - NEWS

June 23, 2023 [Reuters]- U.S. crude oil inventories at the Cushing, Oklahoma, storage hub have risen to their highest in two years, as outages at Midwestern refiners crimp demand and higher flows from Canada add to supply.

 

Stockpiles at Cushing, the delivery point for U.S. crude oil futures, have climbed for eight consecutive weeks after falling earlier this year. Overseas demand for U.S. crude and an end to refinery outages should reverse the build, said analysts.

“We’re going to be sending more (oil exported) abroad,” said Phil Flynn, an analyst at Price Futures Group. “The supply side continues to remain tight if you look at the big picture.”

A spate of unexpected refinery outages in the Midwest have added to the inventories, which rose to 42.1 million barrels in the week to June 9, the highest since June 2021, Energy Information Administration data showed.

IIR Energy was tracking 579,000 barrels per day (bpd) of oil offline in May in the central U.S., double the 256,000 bpd offline the same month a year ago, said Hillary Stevenson, a senior director at the company.

Outages at BP Plc’s and Cenovus Energy Inc’s (CVE.TO) 160,000-bpd Toledo, Ohio refinery and Phillips 66’s (PSX.N) 149,000-bpd Borger, Texas refinery likely have contributed to higher Cushing stockpiles, Stevenson added.

Slightly higher flows from Canada also added to the supplies, with Enbridge Inc’s (ENB.TO) 702,000-bpd Flanagan South pipeline showing elevated flows in May and so far in June, said John Trischan, senior research manager of oil transportation at Wood Mackenzie.

Canadian crude may have been sent toward Cushing as feedstock for a restart of the Toledo refinery, which had a fire last year, said Matt Smith, lead oil analyst for the Americas at Kpler.

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Phillips 66 to Sell 25% Stake in Rockies Pipeline for $1.28 bln
06.18.2024 - NEWS
June 18, 2024 [Reuters]- U.S. oil refiner Phillips 66 said on Friday it would sell its 25% stake... Read More
US Oil Refining Capacity Rises for Second Year in a Row
06.18.2024 - NEWS
June 18, 2024 [Reuters]- U.S. crude oil refining capacity rose 1.5% to 18.38 million barrels per ... Read More
Chevron Lummus Global's ISOTERRA Technology Selected for Sustainable Aviation Fuel Project in China
06.18.2024 - NEWS
June 18, 2024 [Lummus Technology]- Chevron Lummus Global LLC (CLG) today announced its ISOTERRA t... Read More
Russia's June Idle Oil Refining Capacity Raised by 114%
06.18.2024 - NEWS
June 18, 2024 [Hydrocarbon Processing]- Russia’s primary offline oil refining capacity has ... Read More