Publications: Notes at the Margin

Storage Economics and Cold Weather (February 23, 2015)


In this week’s report, we focus first on storage economics. But for the artic weather blasting much of the United States, crude oil prices would be much lower due to the growing inventory. Expect prices to fall when temperatures warm. Second, we briefly assess the recent cold’s impact on prices. On the first topic, the message is the crude oil price decline is not over yet and will not be over until tanks stop filling. The next major decrease will come when Cushing tanks reach capacity. On the second, the cold-induced rise in distillate prices will have a short-lived knock-on effect with crude.


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