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View Full Version : So now that Cushing is damn near full of oil.....


royalfan5
2/12/2009, 05:18 PM
what are y'all going to do to store it, or is there just going to be further domestic production cuts? It's really starting to widen the WTI/Brent spread.
NormanPride
2/12/2009, 05:35 PM
Wut?
royalfan5
2/12/2009, 05:53 PM
Wut?
Cushing, Oklahoma is the NYMEX delivery point for traded oil contracts. As such, there is a significant amount of storage at Cushing. It is damn near full. This means there is too damn much oil sitting around in America. As such, West Texas Intermediate Crude contracts are trading at a substantial discount to North Sea Brent Crude Contracts. Are Oklahoma oil producers backing off because of this?
OklahomaTuba
2/12/2009, 06:18 PM
Exploration is (have you seen the rig count?? YEOW!) but production is probably going to remain dip some, not much, due to storage costs being so low and sunk costs in pumping in marginal wells, and Oklahoma and west texass are full of those.

Also, with the cutbacks in production overseas, etc, nearly everyone expects oil to start heading up once the traders have access to more capital. People are really hedging now. I mean, have you seen gold? Holy ****!!!