Rising oil supplies along the Gulf Coast are also lifting the price for futures contracts for storing crude at the Louisiana Offshore Oil Port.
This week the price of a futures contract at LOOP hit 90 cents per barrel on the New York Mercantile Exchange, the highest since the contracts began trading 10 months ago and twice what the contracts fetched just two weeks ago, according to Bloomberg.com.
Increasing imports, a lack of storage in a major hub in Cushing, Oklahoma, and more shipping capacity have sent more oil to the Gulf Coast. Last week, oil storage along the Gulf surged to 252.9 million barrels, a level that hasn’t been before. Storage facilities along the Gulf Coast can hold 302.3 million barrels, not including pipelines or field storage.