Yesterday, June 20, 2021, I posted this:
- from Bloomberg, empty oil tanks at key storage hub [CUSHING] show speedy demand rebound; note the emphasis on demand, not supply;
Did anyone look at the story? From the story:
“Typically, in a backwardated market, its (sic) the storage that isn’t being used for operational purpose (sic) like the ones in Cushing, Oklahoma, that get emptied out first,” Barsamian said. “Storage at most other locations such as in Houston and Midland in Texas are (is) used for operational purposes and get (sic) emptied out later.”
Besides all the typographical errors in this Bloomberg story, it seems counterintuitive -- the operational ones get emptied out later.
How to explain this? Operational storage, being used now, is immediately refilled as the "operational" crude oil is drained from the storage tanks. Sort of like pouring concrete over a continuous twenty-four hours when there can be no interruption in the pour. Same with refiners and storage tanks.
But I think there's a bigger story here. Anyone following the blog for any length of time will know why Cushing tanks may be a bit under-filled.
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