U.S. crude stockpiles probably rose for a sixth week, the longest series of gains since May, as a glut forms at Cushing, Oklahoma, the country’s biggest oil- trading hub, a Bloomberg News survey showed. Inventories climbed 1.13 million barrels in the seven days ended Feb. 18 from 345.9 million a week earlier, according to the median of 12 analyst estimates before an Energy Department report tomorrow. Ten respondents forecast an increase and two projected no change.
Supplies at Cushing, the delivery point for New York-traded West Texas Intermediate, rose to the highest level since at least 2004 last month, according to the Energy Department. TransCanada started deliveries from Alberta to the hub on Feb. 8 in the second phase of its Keystone pipeline project.
“The increase at Cushing is a benefit the U.S. gets from being linked to rich Canadian resources,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy.
An expansion of the pipeline to the Gulf Coast, the third phase of the project, known as Keystone XL, may be operational by early 2013 if regulators approve it. The XL extension will run from Cushing to Nederland, Texas, linking Gulf refineries to Canada’s oil sands.
Cushing Stockpiles
Cushing stockpiles have climbed in 11 of the past 14 weekly reports from the Energy Department. They peaked at 38.3 million barrels in the last week of January.
Refineries probably operated at 81.7 percent of capacity, up 0.5 percentage point from the prior week, according to the Bloomberg News survey.
Gasoline stockpiles increased 700,000 barrels from 241.1 million, the survey showed. Supplies have climbed in all but one of the past 13 reports and surged to the highest level since March 1990 in the week ended Feb. 11. Thirteen respondents gave product-supply estimates. Seven respondents projected a gain, five said there was a drop and one forecast no change.
Supplies of distillate fuel, a category that includes heating oil and diesel, probably slipped 1.2 million barrels from 161.3 million, the survey showed. Eleven of the analysts anticipated a drop and two projected an increase.
The department is scheduled to release its weekly report at 11 a.m. tomorrow in Washington, a day later than usual because of the Presidents Day holiday on Feb. 21.
