U.S. crude oil exports to Gulf Coast increase trading volumes, diminishing Cushing, Oklahoma's storage and pricing hub role.
Rising U.S. crude oil exports are elevating the Gulf Coast's price benchmarks, significantly increasing trading volumes on Houston contracts, which have more than doubled in September. This shift diminishes Cushing, Oklahoma's role as a storage and pricing hub, with more oil from the Permian basin moving to Gulf Coast terminals. Cushing's storage levels are now near operational minimums, indicating a trend towards the Gulf Coast as the primary market for U.S. crude.
September 27, 2024
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