Storage levels for crude oil in PADD 3 reach a record high in early October, topping 100 million barrels.
The four hubs in the West Texas Permian Basin, Houston, Texas, Beaumonth-Nederland, Texas, Corpus Christi, Texas and St. James, Louisiana, have been monitored by Genscape since July 2014.
Despite record-high storage levels, total monitored capacity utilization remains below 60%. The previous highest storage level was reached in May 2015 shortly after the record high stock levels witnessed at Cushing, Oklahoma in April 2015.
According to Genscape, some of the storage increases at the PADD 3 can be attributed to a southward migration of barrels from PADD 2 and also Canada.
Waterborne imports into PADD 3 can also be a large contributor to storage levels in the region. However, during the eight weeks between August 13 and October 1, 2015, waterborne imports into PADD 3 declined by 4.5 million barrels, highlighting that most of the PADD 3 stock increase was sourced from within North America.
The IS refinery maintenance season is also gearing up, which will create local demand changes in already oversupplied crude markets. Planned maintenance is expected to have the largest effect on the US Midcontinent, despite the much larger refining capacity on the Gulf Coast.