Posted on 10/07/2013 5:52:21 AM PDT by thackney
Among other inconveniences, Washington's shutdown could make it harder to keep track of what is going on in a place just over 1,000 miles away from it: Cushing, Okla.
Cushing, where several major pipelines meet, is where oil futures are settled physically. So stock levels there are watched closely. The Energy Information Administration releases those figures once a week, but the shutdown could soon prevent it from doing so, leaving the market in the dark.
Here's betting, though, that Cushing's tanks are going to empty out some in coming weeks. All else equal, that is bullish for benchmark West Texas Intermediate oil prices.
Just don't get carried away.
In contrast to much of history, WTI has traded at a discount to Brent crude oil pretty consistently since August 2010 as rising U.S. output led to gluts in the Midwest. In the 12 months ended in July, Cushing inventories averaged 47 million barrels, up from 33 million in the same period ending in July 2010.
WTI's discount to Brent peaked at almost $27 a barrel last September. By July, though, it was catching up fast. The reason: New pipeline capacity was opening up, providing options for draining the oil toward the coast, where it could be refined for exporting at global, or Brent-like, prices. Cushing inventories have dropped by a third since the end of June.
By early September, the discount had widened to almost $8, but it narrowed again last week to under $6 on news of more pipeline capacity. The southern leg of the Keystone XL pipeline, not subject to White House approval, is to be completed by month's end. So even more oil should flow south from Cushing.
(Excerpt) Read more at online.wsj.com ...
An oil drilling rig in Watford City?
Maybe not in Watford but pretty close, I would believe.
I was in Watford last week and there was a rig right next to the City
Interactive map at:
http://gis.bakerhughesdirect.com/RigCounts/default2.aspx
Cushing still has 2 refineries that are sidelined.
They are up to date as required by law.
Obama needs to GTF out of the way and let America thrive.
Cushing refineries in full production would be an imense boost to the economies of Pushing, Outright, Milton, Outright, Yale, Stillwater, et all.
Sooner the better....
Where is Watford?
Which two are those?
Are you talking about the Kerr-McGee and Hudson Refineries that closed 3 decades ago?
If those are the two refineries you are talking about, both are superfund sites and haven’t been up to date since before they closed.
http://www.epa.gov/region6/6sf/pdffiles/hudson-ok.pdf
NW ND.
Yep
Those are polluted scrap yards, not up to date refineries.
North Dakota
South Dakota to Vendome
North Dakota
LOL!!!
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