Oil Execs Brace for $5 Gas as Supplies Dwindle in Cushing
WHO:
CNN - Steve Crowder, president of Little River Energy Company in Cushing, Oklahoma.
CNN - Lee Denny, a Cushing native and former Oklahoma state representative.
CNN - Mike Sommers, CEO of the American Petroleum Institute.
CNN - Neil Chapman, senior vice president of ExxonMobil.
CNN - Mike Wirth, CEO of Chevron.
CNN - David Oxley, chief climate and commodities economist at Capital Economics.
CNN - Natasha Kaneva, head of commodities strategy at JPMorgan.
WHAT:
Alternet - Gas prices could reach $5 per gallon if the situation does not improve within a month.
CNN - Cushing's oil inventory has dropped to below 22 million barrels due to the ongoing conflict and supply issues.
CNN - U.S. diesel stocks have recently hit their lowest level since 2003, with gas inventories about 5% below last year's levels.
CNN - Oil stockpiles in wealthy nations are falling by 6.3 million barrels per day, currently sitting at just 2.6 billion barrels.
CNN - If the situation does not resolve by year-end, oil prices could approach $200 per barrel, leading to gas prices around $9 a gallon.
Alternet - Gas prices in the U.S. are currently averaging $4.11 per gallon.
CNN - Cushing's current oil inventory is 21.6 million barrels, down from a normal capacity of 40 million barrels.
CNN - Cushing can hold about 75 million barrels of oil.
CNN - Analysts warn that if Cushing's reserves drop below 20 million barrels, it will reach a critical level where the oil becomes unusable sludge.
CNN - Energy executives predict gas prices could rise to $5 per gallon if the situation does not improve.
CNN - Oil prices could rise above $90 today and potentially reach $140 to $160 per barrel in the coming months.
WHERE:
Alternet - Cushing, Oklahoma, is described as a pivotal hub for U.S. crude oil storage and distribution.
CNN - Cushing is referred to as the "pipeline crossroads of the world."
WHEN:
CNN - A statement from the International Energy Agency, International Monetary Fund, World Bank Group, and World Trade Organization was released on May 29.
CNN - A conference hosted by Bernstein in New York took place on May 28.
WHY:
CNN - The U.S. has become the supplier of last resort for nations that typically source oil from the Middle East due to ongoing conflicts.
CNN - Demand for U.S. oil surged to a record high during the Iran war, leading to rapid depletion of Cushing's oil reserves.
HOW:
CNN - The oil market could enter a panic mode due to minor issues, causing extraordinary price volatility.
CNN - The oil market is experiencing a supply shock, with commercial oil inventories in wealthy nations falling by 6.3 million barrels per day.
CNN - The depletion of oil inventories is causing concerns about fuel security and market stability.
(UPDATED June 13, 2026 13:22 UTC)
Gas prices could soar to $5 per gallon if the current situation doesn't improve within a month, and if it continues to deteriorate, we might see oil prices approach $200 per barrel by year-end, pushing gas prices to around $9 a gallon. Cushing's oil inventory has dropped below 22 million barrels, while U.S. diesel stocks have reached their lowest level since 2003, with gas inventories about 5% lower than last year. Additionally, oil stockpiles in wealthy nations are declining at a rate of 6.3 million barrels per day, currently totaling just 2.6 billion barrels, which could trigger panic in the oil market and lead to significant price volatility.
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(UPDATED June 13, 2026 04:21 UTC)
In Cushing, Oklahoma, a critical hub for U.S. crude oil storage, gas prices are currently averaging $4.11 per gallon, with oil inventories at a concerning 21.6 million barrels, significantly below the normal capacity of 40 million. Energy executives warn that if reserves drop below 20 million barrels, the oil could turn into unusable sludge, potentially driving gas prices up to $5 per gallon and oil prices above $90 per barrel, with projections reaching as high as $140 to $160 in the coming months. The U.S. has become the supplier of last resort for many nations due to ongoing conflicts in the Middle East, leading to a record surge in demand for U.S. oil and a rapid depletion of Cushing's reserves.