Key Oil Market Indicator Shows Market Tightest in Three Years

WTI prompt most backwardated since 2014 as Cushing stocks drop
Not much inventory overhang left, according to Energy Aspects

The silhouette of an electric oil pump jack is seen near a flare at night in the oil fields surrounding Midland, Texas, U.S., on Tuesday, Nov. 7, 2017. Nationwide gross oil refinery inputs will rise above 17 million barrels a day before the year ends, according to Energy Aspects, even amid a busy maintenance season and interruptions at plants in the U.S. Gulf of Mexico that were clobbered by Hurricane Harvey in the third quarter.Photographer: Luke Sharrett/Bloomberg

Have a confidential tip for our reporters? Get in Touch

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE

By Alex Longley

January 4, 2018 at 6:21 AM EST

This article is for subscribers only.

One of the key gauges of oil market strength hasn’t looked this good for bulls since 2014.

West Texas Intermediate futures closest to expiry are trading at the biggest premium to the next month in more than three years, as inventories plunge at the key storage hub of Cushing, Oklahoma. Stockpiles at Cushing -- the delivery point for WTI contracts -- slid to the lowest since February 2015 last week.

Have a confidential tip for our reporters? Get in Touch

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE