Genscape: "Inventories At Cushing Are Close To Maximum Operating Capacity"
By Tyler Durden
By Dylan White of Genscape
Cushing, OK, Crude Stocks, USGC Exports Hit Record Highs after U.S. Midcontinent Refinery Work
Cushing, OK, crude inventories reached a record high May 3, 2016 of more than 70mn bbls after refinery outages in the U.S. Midcontinent displaced barrels to both storage tanks and the U.S. Gulf Coast. Without significant new storage capacity, Midcontinent stocks could reach maximum operating capacity this year, according to Genscape.
Cushing inventories increased 1.3mn bbls week-on-week following the spring maintenance season, which also caused Patoka, IL, stocks to climb 1.4mn bbls to a record high above 11mn bbls week ending April 29, 2016.
Meanwhile, along the Gulf Coast, waterborne loadings to international and domestic destinations recently hit a 2016 high while stocks increased in the Midcontinent.
– See more at: http://www.genscape.com/blog/cushing-ok-crude-stocks-usgc-exports-hit-re…
Cushing stocks border maximum capacity utilization
Inventories at Cushing are close to maximum operating capacity, and on May 3, 2016 reached utilization just shy of 80 percent, a record high since Genscape began monitoring the hub in 2009. Genscape has never observed capacity utilization higher than 80 percent based on historical data, though utilization may breach 80 percent depending on the utilization of merchant capacity, or capacity that is leased by an owner to other users.
Utilization of operational capacity has remained above 70 percent at Cushing since November 2015. Storage capacity at six of 16 operators at Cushing was utilized above 80 percent as of May 3, 2016.
There is little help on the horizon from new storage capacity to prevent Cushing from hitting maximum operating capacity. There are two tanks under construction at Cushing, totaling 540,000 bbls. No tank construction projects are underway at Patoka.
The record high May 3, 2016 was almost 600,000 bbls higher than the previous record high set March 15, 2016 and 5.0mn bbls more than the highest point reached in 2015.
Storage data reflecting Cushing and Patoka inventories for week ending May 5, 2016 was released to customers on May 9. The May 3, 2016 Cushing record high was the fifteenth this year, as stocks continue to grow.
Patoka stocks also reached a record high after increasing two consecutive weeks, up 2.2mn bbls between April 15 and April 29, 2016. The record high was 488,000 bbls higher than the previous record high of 10.6mn bbls reached November 13, 2015.
Capacity utilization at Patoka terminals was at 65 percent for the week of April 29, 2016, just below the record high utilization rate of 67 percent set April 2013. Capacity utilization at Patoka has fallen below 50 percent once in 2016.
In 2016, crude storage in Texas increased as storage capacity in the Midcontinent became scarce. Total monitored crude stocks in the Gulf Coast and West Texas region increased 18.5mn bbls between February 12 and March 18, 2016 to a record high above 122mn bbls. Stocks in the region remained just below the record high for the next month before dropping 2.4mn bbls the week ending April 29, 2016, …read more
Source: Genscape: "Inventories At Cushing Are Close To Maximum Operating Capacity"
