– In recent notes we’ve cited output gains in Libya, stubbornly high Cushing inventories and OPEC skepticism as the key bearish culprits keeping a lid on an otherwise tightening crude market. This week we have another item to add to that list: a flood of imported oil into the US Gulf Coast. Wednesday’s EIA report revealed a larger than expected crude oil inventory build of 5m bbls due to a staggering 4m bpd of imports (4yr high) into the US Gulf Coast. Crude oil inventories in PADD III are now higher y/y by 14% as a result of the elevated imports and a spike in floating storage to more than 8m bbls in the Houston area suggests that the PADD III status may temporarily be even more bearish than it appears. Houston area congestion is obviously keeping more barrels in Cushing and pressuring WTI spreads and differentials. However, we […]