Cushing crude stocks sit less than 2 mmbbls above operational floor amid global supply crisis

Cushing crude oil storage inventories have fallen dramatically to near-critical levels, dropping 11.3 million barrels between April and June 2026 due to global supply disruptions from Middle East conflicts. Storage capacity utilization fell below 29%, approaching the operational floor of 26.7%, with potential to reach minimum levels within 1-2 weeks. The tight inventory situation is driving increased US crude exports and refinery runs, while market responses include redirected pipeline flows and tightened WTI price spreads. If supply disruptions persist, critical inventory levels at key US hubs could be reached within 1-2 months, potentially limiting US export capacity and reflecting a significantly tighter physical oil market.