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U.S. oil futures surge as Cushing stocks evaporate: Kemp
U.S. crude futures prices have surged higher and the curve has moved into an increasingly severe backwardation as inventories drain away from around the futures delivery point at Cushing in Oklahoma. There is no doubt the global petroleum market has tightened since the start of the third quarter as a result of Saudi and Russian production cuts as well as an improving economic outlook in the U.S. But it has probably not tightened anything like as fast or as far as the sudden depletion of inventories at Cushing and the rise in futures prices suggests. The draw-down of crude inventories in the rest of the U.S. and other ... (full story)