[thackney]

[cuban leaf]

Although inventory levels at Cushing are at their record high, storage utilization (inventories as a percent of working storage capacity) are not at record levels. Capacity utilization at Cushing is now 77%, a large increase from a recent low of 27% in October 2014.

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So, in 5 months it went from 27% full to 77% full, and that is not taking into account an increase in capacity?

We have a glut.

I’ve noticed some interesting pricing going on where I live. The price of gas both at the Pilot stations on I-65 and the ones in the small towns by where I live were at the $2.20 range and dropping a penny or two every couple of days.

Then, last thursday, the price at my local area was between $2.07 and $2.15, depending on the station, but all the Pilot and other “near the freeway” stations went to $2.59.

Today, it was still cheap in the towns and the freeway stations were down to $2.46. Since moving to KY from Seattle I’ve noticed the prices are much more overtly manipulated here. The pricing curve looks like a sawtooth with slow and steady drops followed by a sudden 20-50 cent rise in one day, at ALL the stations at once.

But the current environment just doesn’t seem to support it.

[oldplayer]

I drove the Cushing tank farms yesterday. Construction of new 500,000+ barrel tanks continues apace.

Oldplayer

[X-spurt]

Isn’t the southern section of Keystone working and able to bring crude from Cushing to Gulf Coast refineries?

[painter]

I read an investment newsletter that I get regularly stating all storage capacity will be maxed out around June.

[Steely Tom]

Investment in storage capacity is stimulated by fluctuations in price, correct?

And in the expectation of continued large fluctuations?