Fill, baby, fill - market fundamentals push Cushing storage to its limits

The demand shock resulting from COVID-19 curtailment efforts is roiling crude markets with refiners rapidly responding to demand conditions not seen in decades. Producers slow in responding to rapidly changing pricing signals are scrambling to find storage during what is setting up to be one of the largest global supply over-hangs in history in 2Q. For North American producers, that means all eyes are now on Cushing, Oklahoma. Cushing will once again serve as the bleeding edge indicator for the direction of not only North American crude storage but as a proxy for what’s to come with storage globally. In this insight we explore: -How does this current build in Cushing stocks compare to the over-supply seen in 2015? -How much operational capacity exists until ‘tank tops’? -And importantly, when will Cushing fill up?