In Latest Sign of Crude Glut, Ageing Supertankers Used to Store Unsold Oil

Reuters via gCaptain ^ | June 16, 2017 | Keith Wallis and Henning Gloystein

[Oatka]

[Reuters] Traders are increasingly storing oil in ageing supertankers in Southeast Asia as they grapple with a supply overhang that has left the system clogged with unneeded fuel despite an OPEC-led drive to cut production to prop up prices.

Around 10 very large crude carriers (VLCCs), all between 16 and 20 years old, have been chartered since the end of May to store crude for periods ranging from 30 days to around six months, brokers told Reuters. Each VLCC can carry 2 million barrels of oil.

[Oatka]

Let's see how long it takes this glut to show up at the gas pumps.

[Attention Surplus Disorder]

This has been going on for years and years and years

[vooch]

My guess is oil will stay around its current price for a long time. Demand for oil is stagnant worldwide. In the developed world oil demand is shrinking. As China and India reach middle income, we’ll see their demand slowly shrink also. Once that happens, we can see price plummet.

[Kickass Conservative]

Reminds me of Water World and the Exxon Valdez.

Dennis Hopper was unavailable for comment.

[Farmer Dean]

Saw regular gas priced at 1.959 yesterday in Ashland Ohio.

[Tallguy]

Doesn’t matter. My state, Pennsylvania, will just raise the gas tax another $0.30 just because the can.

[NorthMountain]

Wait no longer ...

[NorthMountain]

Added Pennsylvania just for you:

Charts courtesy of Gasbuddy

[NorthMountain]

Interactive heat map of gas prices can be found here.

[Tallguy]

Errr... Thanks... I think?

[NorthMountain]

Looks like PA gas prices track the national average closely, with a $0.20 to $0.30 offset. You can probably blame much of the offset on taxes.

[Mercat]

Trump’s fault. /s

[The Truth Will Make You Free]

Current price in Tulsa is $1.729. I’ve been buying Costco gift cards online @5% off using Discover’s April-June cash back special. My effective price is currently $1.643.

[az_gila]

Looks like PA gas prices track the national average closely, with a $0.20 to $0.30 offset. You can probably blame much of the offset on taxes.

---

Yes, just like the Los Angeles prices, but with about a 60 cent offset for "we love taxes" Kalifornia -

[NorthMountain]

Every time I go to LA (business) I’m appalled by the gas prices. I don’t have to pay it personally, but still ... it’s insane.

[ZULU]

Good. Hope the pigs have to drink their oil.

[Milton Miteybad]

Using a nationwide average price of $2.25/gallon in 2017, that same gallon of gasoline would have sold for $1.02 in 1986, a time when the gasoline market was completely saturated.

The difference? Inflation. Your dollar has less purchasing power today than 30 years ago. Less than half the purchasing power, to be more precise.

In other words...today, here and now, the gasoline you're buying is just plain cheap. It's selling for the same price in inflation-adjusted dollars as it was during the last great oil glut in the mid 1980s. In inflation-adjusted dollars, you're paying the same price for gas as in 1986, when retailers were practically giving the stuff away.

You'll do well to enjoy it while it lasts. ;-)

[Grams A]

$1.949 at Exxon in Pearland - a suburb of Houston - yesterday. Mobil and local Kroger has been $1.99 for a couple of weeks now. Have $.40 accumulated in Kroger gas discounts which we have to use before month end. Going to run it as low as possible. Been long time since we’ve paid less than $1.60/gallon. Looking forward to filling the dual tank truck with 49.5 gallons.

[umgud]

Here in central CA, just saw Chevron regular for $3.09/gal.

[rockinqsranch]

SoCal Inland Empire area premium has been $3.35 for a couple of months.