Cushing, Oklahoma is the delivery location for the NYMEX benchmark Light Sweet Crude Oil futures contract.
Light Sweet Crude Oil futures contract specifies delivery of a common stream of light sweet crude U.S. oil grades, which are referred to as WTI or Domestic Sweet crude oil.
The Cushing physical delivery mechanism is a network of nearly two dozen pipelines and 15 storage terminals, several with major pipeline manifolds. Cushing is called The Pipeline Crossroads of the World.
This vibrant hub has 90 million barrels of storage capacity where commercial companies are active participants in the market. The storage capacity has grown dramatically over the past few years and now accounts for 13% of total U.S. oil storage.
Crude oil inventory levels reached a record high of 69 million barrels in storage in early 2017.
Cushing’s inbound and outbound pipeline capacity is well over 6.5 million barrels daily.
It is interconnected to multiple pipelines, each capable of transporting hundreds of thousands of barrels of oil daily.
Significant investments in infrastructure, along with increased U.S. oil production, and the repeal of the oil export ban have strengthened the role of WTI as the leading global benchmark.
As U.S. oil production continues to increase, Cushing will play an even greater role in the global petroleum landscape.