Cushing, Oklahoma — the delivery point for NYMEX WTI futures — has seen storage levels drop to operational minimums, a condition known as 'tank bottoms.' This constrains physical delivery logistics, forces buyers to pay up for spot barrels, and typically steepens the front-month futures curve into backwardation. The setup is historically associated with short-covering rallies and basis blowouts at the hub.

The key question for traders is whether this draw reflects genuine demand strength or a pipeline/logistics shift routing crude away from Cushing toward Gulf Coast export terminals — a structural change that would mute the bullish read. USO, the front-month WTI ETF proxy, carries a deeply negative net margin (-20,155%) due to roll costs and fund structure, making it a poor long-hold vehicle; the cleaner expression of a Cushing tightness thesis would be via the WTI futures curve or integrated producers. Watch weekly EIA storage prints and the Cushing-specific inventory line for confirmation.