U.S. crude oil inventories at Cushing, Oklahoma, fell by more than half in the past year (10/3/2018)

Crude oil inventories held at Cushing, Oklahoma, decreased by more than half since this time last year, recently falling to lows last reached in 2014. Logistical factors and strong demand for crude oil from both domestic refining and exports markets have contributed to the steep year-over-year decrease. Because inventories can satisfy either current or future demand, their levels are also sensitive to the relationship between the current price of oil and the expectations of future prices. Since October 2017, the forward curve of West Texas Intermediate (WTI) futures prices has been in backwardation, where near-term deliveries are priced higher than long-term deliveries. ... More »