City of Cushing threatens OPEC plans

The record production of oil from the small town of Cushing, Oklahoma, United States, can stand in the way of the agreement between the Organization of petroleum exporting countries (Opec), Russia and other producers, that determined the production cut in order to get the appreciation in the price of oil.

The Cushing city has storage tanks of 77 million barrels of crude oil. What could cater to France for two months, for example. However, excessive production is causing WTI prices fall, contrary to expectations of the members of Opec and producing countries.

On Wednesday, 14 December, the price of WTI fell below $51 a barrel, when the same week the value passed to reach $54.51. Future shipments also were hit and the WTI for February applied to $1.09 a barrel in Thursday. OPEC reductions only start to operate on January 1, while this week's build-up Cushing stock continue to rise.


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