Bloomberg: Cushing, Oklahoma Is A Threat To OPEC
CUSHING, Oklahoma - By Will Kavanagh, Osage SkyNews 6 HD pilot
OPEC is threatened by our little town of Cushing out here in central Oklahoma.
OPEC is the Organization of Petroleum Exporting Countries. It just announced it's cutting production in hopes to raise prices of the oil. But Cushing, the Pipeline Crossroads of the World, is home to one of the U.S.'s biggest stockpiles of oil.
Bloomberg.com quotes experts who say the huge stockpile of oil at Cushing is putting pressure on OPEC.
The huge storage tanks at Cushing can hold 33,000 barrels of crude each, meaning a total of just under 80 million barrels of crude can be stored there.
Right now they are right around 66 million barrels of crude and that's because refineries are sending more crude to Cushing to lower their tax bills at year's end.
This hurts OPEC's efforts to raise prices by cutting production. Eventually OPEC may get its price increase, but as long as Cushing's stockpile remains a threat, it will take some time.