Genscape measurement of Cushing stocks shows an increase of 1,178,613 barrels for the week ending May 24, or the third week in a row of increases. Total Cushing inventories are once again approaching the highest level for the last year hit back in February. With the Pegasus pipeline still shut down, the destocking pattern at Cushing is starting to turn back to a short term building pattern. Click here for a larger version of the graph to the left.
The net outflow of oil from Cushing to the Midwest decreased by 7 percent or an average of 27,051 bpd for the week ending May 24. This was the third week in a row of a decrease in flow. There was a modest increase of about 17,061 bpd of oil flowing from West Texas into Cushing. For the first week in the last three weeks the net pipeline outflow from Cushing increased modestly. For the week ending May 24 total net outflow increased by an average of 24,019 bpd offsetting a small portion of the decrease experienced over the previous two weeks. An increase in flow on the Seaway pipeline was the major contributor to the increased net flow out of Cushing. The Seaway pipeline averaged 318,693 bpd for the week ending May 24 or the highest level since the reversal. All these signs point to an interesting crude complex that will be filled with opportunities.
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