(July 29, 2014 – WSJ “Money Beat”) Cushing Oil Supplies Squeeze Market
U.S. oil production is booming. But for physical traders, there isn’t enough oil in the one place that it matters: Cushing, Okla.
Storage supplies in Cushing, the physical delivery point for the benchmark New York Mercantile Exchange contract, have plummeted from 41.8 million barrels in late January to 18.8 million barrels, the lowest level since 2008, thanks to new pipeline capacity.
London-based consulting firm Energy Aspects says 18 million barrels is Cushing’s operational...