“Sleep well” Yes, I am sleeping much better as I am getting so much more exercise by not driving my car any more for short market trips. I did not know that Cushing was mostly Canadian crud. Is that Canadian tar sands? Where does the West Texas Intermediate go, or is it played out?
The US produces a lot of oil. We will continue to produce oil from mature provinces like West Texas for a very long time and are likely to get some good news as technology improves. We however, use a lot more than we produce and I believe this is unlikely to change.
There is some good news on the production rates for West Texas origin WTI and Mid continent light sweet crudes of late. There has also been quite a lot of very high quality oil from the Bakken [North Dakota mostly] added to supply lately — in fact several hundred thousand barrels per day in increased production.
There are a lot of ways crude makes its way to Cushing,and pipelines to take oil from Cushing to Midwest refiners ... but at this time no pipeline which flows from Cushing toward Houston. AS a result, whatever is in over supply tends to stay in Cushing creating a local glut. Hence the big discount in WTI over Brent when a two or three dollar premium in WTI over Brent has been the usual pricing structure over time.
Canadian oil sands crude can be upgraded, but is most economically goes into the crude supply as heavy oil [sometimes blended with lighter crude to get it up to some minimum] , which is in less demand than the lighter crudes. I am far from an expert on oil sands.
Finally, “yes” a little more exercise would probably be a very goos thing for many of us.
Hope the explanation helped.