03-25-2015, 01:44 AM
(This post was last modified: 02-08-2018, 12:35 AM by dmcowen674.)
Remember this next time the Oil Thugs say there is no oil:
3-24-2015
Sorry, but there was never an oil storage crisis
Crude oil storage inventories in the US are at their highest levels in decades. Is that going to cause the price of West Texas Intermediate crude to crash?
Probably not, according to Robert Rapier of Energy Trends Insider.
In fact, we're not even close.
Rapier writes that "oil producers could continue to add a million barrels a week (which is about the average over the past year) for nearly four years before crude oil storage is actually full."
Over at Reuters, John Kemp writes that the market doesn't actually seem very worried about storage capacity.
If the market was concerned about space at Cushing and onshore more generally, the contango would have widened even further as stocks rose to make it profitable to use more expensive offshore storage.
However the term structure of futures prices has remained essentially unchanged for the past two months — implying traders are not particularly concerned about storage issues and do not foresee the need for more expensive options like floating storage.
3-24-2015
Sorry, but there was never an oil storage crisis
Crude oil storage inventories in the US are at their highest levels in decades. Is that going to cause the price of West Texas Intermediate crude to crash?
Probably not, according to Robert Rapier of Energy Trends Insider.
In fact, we're not even close.
Rapier writes that "oil producers could continue to add a million barrels a week (which is about the average over the past year) for nearly four years before crude oil storage is actually full."
Over at Reuters, John Kemp writes that the market doesn't actually seem very worried about storage capacity.
If the market was concerned about space at Cushing and onshore more generally, the contango would have widened even further as stocks rose to make it profitable to use more expensive offshore storage.
However the term structure of futures prices has remained essentially unchanged for the past two months — implying traders are not particularly concerned about storage issues and do not foresee the need for more expensive options like floating storage.