PrintThe delivery point for the NYMEX Crude Oil contract is the Cushing Hub in Cushing, OK, USA. It is the world's largest crude oil storage facility and represents 16% of the US capacity. It has been in the news over the last few months as Transcanada seeks approval for its Keystone XL pipeline and, as the excess supply at Cushing looks for new outlets to the Gulf of Mexico refineries.
Key Learning Points for the Mini-Lecture: Cushing - NYMEX Crude Oil Hub
While watching the following mini-lecture, please keep in mind the following key points:
- Cushing, OK is the delivery "hub" for the NYMEX contract for crude oil.
- It has both pipelines and storage capacity.
- It is currently over-supplied.
- Take-away capacity is constrained.
- Gulf Coast refiners are having to pay higher prices as a result.
- Two major pipeline projects could solve the supply problems.