Cushing, Oklahoma: The Town That Prices the World's Oil

Every WTI futures contract promises delivery at Cushing — making this Oklahoma tank-farm town the physical anchor of the world's most-traded oil price. Current stocks: 22.6 million barrels (EIA, week ending 2026-08-07) of ~78 million capacity. Here's why those tanks move markets.

Why One Town Matters

The physical hub

  • ~78 million barrels of tank capacity — the largest crude storage hub in the US.
  • A dozen pipelines converge: inbound from the Permian, Rockies and Canada; outbound to Gulf Coast refineries and export docks.
  • Delivery point for NYMEX WTI since the contract launched in 1983.

The market signal

  • Cushing stocks are reported every Wednesday in the EIA report — traders watch them as closely as the national number.
  • Full tanks → contango and WTI weakness vs Brent (the 2020 negative-price extreme).
  • Empty tanks → backwardation and WTI strength (2023's "tank bottoms" episodes).

Related: how WTI futures work · Brent vs WTI · the glossary for contango and backwardation.

Cushing FAQ

How much oil is stored at Cushing right now?

Crude stocks at Cushing are 22.6 million barrels as of the EIA week ending 2026-08-07 (up 1.6 million on the week), against roughly 78 million barrels of usable ("shell") capacity.

Why is Cushing called the pipeline crossroads of the world?

A dozen major pipelines converge on this town of ~7,500 people, connecting Texas and Rocky Mountain production, Canadian imports and Gulf Coast refineries — with tank farms holding up to ~78 million barrels. Its central, connected position is why NYMEX chose it as the WTI delivery point in 1983.

How did Cushing cause negative oil prices?

In April 2020, COVID had collapsed demand and Cushing's tanks were effectively fully leased. Traders holding expiring WTI contracts faced physical delivery with nowhere to put the oil — so they paid others to take it, and the contract settled at −$37.63. It was a Cushing storage event, not a world-oil event: Brent, with no physical delivery, never went negative.

What do low Cushing stocks mean for prices?

Tight tanks at the delivery point squeeze the WTI contract specifically: the front month rises against later months (backwardation steepens) and WTI strengthens against Brent. Below ~20 million barrels, operational minimums come into play and the market starts pricing "tank bottoms" risk.