now is the time to be filling the SOR to the very brim not selling it off like the boy voiced not too long ago...
Posted on 11/20/2015 4:46:01 AM PST by GonzoII
"The world is floating in oil. The numbers we are facing now are dreadful," said David Hufton from PVM Group
The world is running out of storage facilities for surging supplies of oil and may soon exhaust tanker space offshore, raising the chances of a violent plunge in crude prices over coming weeks, experts have warned.
Goldman Sachs told clients that the increasing glut of oil on the global market has combined with mild weather from a freak El Nino this winter. The twin-effect could send prices plummeting to $20 a barrel, the so-called 'cash cost' that forces drillers to abandon production. "Risks of a sharp leg lower remain elevated," it said.
Oil has fallen from $110 a barrel early last year and is hovering near $40 for US crude, and $44 for Brent in Europe.
(Excerpt) Read more at telegraph.co.uk ...
Remember when liberals were yammering about “peak oil”?
And...
we are still going ahead with plans to draw-down and sell-off the crude that is in the Strategic Reserve.
Idiocy.
we are still going ahead with plans to draw-down and sell-off the crude that is in the Strategic Reserve. Idiocy
If it weakens America...
Sadly, this would put a LOT of white guys out of work
now is the time to be filling the SOR to the very brim not selling it off like the boy voiced not too long ago...
Seems like we should be adding to it buying low selling high not buy high sell low
Notice how the fund generation of oil has decreased by some 60-70% since last year, notice how that affects certain oil producers that we would prefer to be cash poor at this time. (not saying our fedgov is control of that, it is not, but it does lessen the buying/operating power of certain nations). Net exporters/oil focused producers like Me, Asian and NE European folks mainly- on the other hand, the US has become significantly more oil independent and the over supply of oil in our storage capacity is a good thing strategically... I do feel for my friends in the oil patches, the ride was good for a few years, tightening up now, and our economy has the fuel it needs for production cost effectiveness, equating to either higher profits and or lower costs to both the industrial base and the consumer. As always, it is cyclic.
Well then, let’s have $.25/gallon gas at the pump!
Pretty soon the barrels will be worth more than what is in them.
Remember that Goldman is just an extension of the state. Their public statements are propaganda. They are likely telling important clients something different, perhaps even contrary advice.
we need the cash to pay the insurance companies that were damaged by obamacare
old ladies sell the silver to make ends meet
I remember as a kid back in the late 60’s my dad taking the Chrysler (a tank disguised as a car)and filling it up for $5.
Running out of storage space for oil? Store it in the pyramids.
And someone pumped the gas in the car for him, checked the oil and kicked the tires while they were at it.
Depending on which service station he went to, he probably got a drinking glass or something of that sort for buying x gallons of gas.
But... What to do with the grain? /s
$20 oil is not good for the domestic drilling industry. I don’t know of any production facilities domestically that are profitable at that level. Hell, I think even saudi oil is unprofitable at that level these days.
They must have read this article Tanker Rate Spike Dents Floating Storage Effort.
$70K a day rental - Yikes!
They always offered to empty the ashtray for you too.
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