What Happens If Cushing Crude Oil Inventories Drop To Zero -- October 28, 2021

Link to Tsvetana Paraskova, and archived here:

• stocks at Cushing have halved since April 2020 market rout
• storage at Cushing alone has the potential to really rally the market to the moon
• the WTI-Brent spread is now at the narrowest it has been in just over a year

RBN Energy has also addressed the storage issue at Cushing recently, but it raises the question: if Cushing's stocks are so low, a) why is WTI still only at $82 (went down today); and, b) why is number of days of crude oil in US storage still at a relative robust 28 days?

Where is all that oil?

By the way, at the other end of the spectrum, apparently the bottom has fallen out of western heavy Canadian oil -- no one wants heavy, sour (high sulfur) oil. Even as the WTI-Brent spread narrows, the WTI-western Canadian oil spread is about as wide as it's been in a very long time.

So, folks prefer WTI and Cushing is run out of WTI. Pretty amazing.