What Happens With Oil Prices If Cushing Inventories Fall To Zero?

Rebounding U.S. oil demand, a slow recovery of domestic production, and extreme weather-related events have drawn many barrels this year out of the key U.S. crude hub at Cushing, Oklahoma.  Crude oil stocks at Cushing—the delivery hub for the WTI Crude futures contract—have more than halved since April 2020, when the market was fretting about high inventories as the pandemic forced governments to announce widespread lockdowns. Back then, a lack of storage at the Cushing delivery hub contributed to sending WTI Crude down to a negative…