Not feasible. Company “A” takes his oil off the market so Company “B” makes more money selling oil in a market with smaller supply.
Later, when prices are higher, Company “A” sells extra oil onto the market, driving prices lower.
Expand this past two companies to the entire industry.
and now you know why Saudi Arabia doesn’t want to cut their production so Iran and Venezuela can make more selling oil to a market with less supply. Saudi would be doing as you suggested, “storing” it by leaving some in the ground.
I guess. It’s not like you take the oil off the market. Anything is worth exactly what someone will buy it for. If company “A” is willing to sell their oil at a loss maybe company “B” says no thanks. So six mo’s later then oil is up 20 bucks company “B” says O.K.
I realize that it is more complicated than that. Isn’t most oil sold as futures anyway? What’s up with the companies, say Southwest airlines, that bought gas at $3.oo gallon a year ago? They’re pretty much stuck aren’t they?