Reduced Pipeline Flow from Canada Leads to Large Cushing Draw
Inventory levels at the key Cushing, OK, storage hub took another nose dive for the week ending July 18, decreasing just shy of one million barrels according to Genscape’s Cushing inventory report. Cushing storage has been in a destocking pattern since the beginning of 2014 with the completion of TransCanada’s 700,000 bpd Gulf Coast pipeline. While the large draw leaves the market wondering how much more Cushing can drain out, the draw was expected by those looking at the pipeline flow balances surrounding the hub.
The Cushing leg of the Keystone pipeline was a major contributor to this decrease, delivering approximately 593,000 barrels less than it did the previous week.” The Keystone line brings Canadian crude from Hardisty, Alberta, with delivery to Patoka, IL, and Cushing, OK. Flow of
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