Cushing, OK
* The delivery point for futures traded on NYMEX
* Rising inventories/stockpiling reflects wide gap between price of oil for delivery in next month & contracts to deliver later
* Contango is the norm in oil markets, with the price gap representing the cost of storing the oil & locking up investors' money
* Unusually large gap or super-contango may reflect current sluggish demand & expectations that demand will pick up in following months...
+ Contango 'creates financial incentive to store more barrels'
+ Investors can simply buy early contract, take physical deliver, store it, & at same time sell later contract at higher prices
* Max storage capacity in Cushing is ~42.4M barrels, but only ~80% (or ~34M barrels) is operable storage space
* BBERG: DOESCROK Index
+ DOE Cushing, OK Crude Oil Total Stocks Data
+ Updated Weds 10:30AM for previous week end Friday
+ From Energy Information Administration's Weekly Petroleum Status Report
+ Estimated, based on weekly data collected by DOE
