Wednesday, July 29, 2009
long-dated U.S. crude oil futures
Declining demand in a global recession has produced a glut of crude at the massive Cushing oil storage terminal. Storage capacity at Cushing, about 70 miles northeast of Oklahoma City, is expected to exceed 55 million barrels by the end of the year. The premium for long-dated U.S. crude oil futures has grown dramatically since mid-July 2009, which should spur traders to hoard more crude on land and at sea to turn a profit.