Cushing, Midland, And The Keystone XL -- March 28, 2022

Re-posting. Not sure how many folks caught this. Not being reported by other oil analysts.

Oil:

• US oil exports surge, drawing crude away from Cushing; Midland oil headed to coast;
• so, what was supposed to "replenish" Cushing? Not mentioned.
• see below 

"Below":

From the blog, almost seven years ago to the day, link here:

So, if that's true, what is driving oil over $100? It's not the weakness of the dollar. The dollar rose slightly or remained flat, during the rise in the price of oil, so it's not the weakness of the dollar driving the price of oil. 

I can go through a laundry list of likely reasons (which I recently did) but I'll cut to the chase. I think it has to do with the drawdown at Cushing. The Keystone XL 2.0 South is draining Cushing; Keystone XL 2.0 North which was meant to replenish Cushing is not on-line, and probably never will be. Bakken oil should be replenishing Cushing via railroad and existing pipelines, but operators are getting better returns shipping Bakken oil to the east coast and the west coast.

And, it will long be forgotten, but it was President Biden who killed the Keystone XL on his first day in office.