Flood Of Saudi Oil To Hit U.S. Shores As Prices Hit $10

oilprice.com ^ | Apr 20, 2020 | Tsvetana Paraskova

[DannyTN]

... Last week, The Wall Street Journal reported that the volume of Saudi crude en route to the United States is seven times higher than the typical monthly intake of Saudi oil in 2019.

The tankers were loaded before OPEC+ struck a new agreement to take 9.7 million bpd off the market in May and June when Saudi Arabia had embarked on an aggressive price war for market share after the previous OPEC+ deal collapsed in early March. ...

[dakine]

Is that because you’re not very good at it...?

[Balding_Eagle]

Aren’t salt domes a big part of the existing strategic reserve?

[EC Washington]

Gas went to 99 Cents a Gallon in my Indiana town this morning. I cannot remember the last time gas was 99 cents.

[DannyTN]

Tariffs are different from sales taxes.

Yeah, I think gas sales taxes are too high. And I think gas taxes should only be spent on roads and transportation infrastructure.

But in this case I’d put a tariff on foreign oil to help protect domestic production. And I’d use that tariff revenue to fund rebuilding our indusrtries.

[DannyTN]

Tariffs are different from sales taxes.

Yeah, I think gas sales taxes are too high. And I think gas taxes should only be spent on roads and transportation infrastructure.

But in this case I’d put a tariff on foreign oil to help protect domestic production. And I’d use that tariff revenue to fund rebuilding our indusrtries.

[DannyTN]

Tariffs are different from sales taxes.

Yeah, I think gas sales taxes are too high. And I think gas taxes should only be spent on roads and transportation infrastructure.

But in this case I’d put a tariff on foreign oil to help protect domestic production. And I’d use that tariff revenue to fund rebuilding our indusrtries.

[crusty old prospector]

Yes. They are all in Louisiana and Texas. Unfortunately, they are not that significant as far as what they store in the grand scheme of things. They would account for one or two months of current usage. They were to be used at a time of war and not for civilian use. Current US production is about 400 million barrels per month and the entire SPR holds about 800 million barrels. There has been talk in the past about expanding it into some other domes but it has never happened.

[Balding_Eagle]

Then how is the bulk of the Reserve stored?

[crusty old prospector]

Within caverns in salt domes that hollowed out with fresh water years ago.

[Dacula]

I wholeheartedly agree with you DannTN.

I would love to see a 48-hour moratorium on any oil being bought or brought into this nation.

[Dacula]

WTI is at $1.50. It is cheaper than a coke.

[Balding_Eagle]

well, those are the ones I was talking about when I said that they dry up faster than active wells.

[DannyTN]

Not an expert, but google just told me that propane is produced as a byproduct of two processes: natural gas production and oil refining.

Natural gas is considered a substitute for oil. So with oil so cheap, natural gas production will probably fall.

And with the shut down, oil refining is going to stall too.

So I see the production of propane being significantly reduced.

On the demand side, I see that industrial and commercial use is a lot higher than residential use. I'm guessing commercial is probably mostly restaurants. So I'm thinking residential use is up a little. Bring on the back yard barbecues. But industrial and commercial will be seriously down.

I'm just guessing. I think demand drops more than supply does and the price goes down. It's been in a downtrend for a couple of years.

[A Formerly Proud Canadian]

That's a brilliant strategy! Since Russia is also causing the price collapse, maybe Moscow should be bombed, the Kremlin in particular. Give Puti a bloody nose, see how he likes it! How about the mullahs in Iran? They are sworn enemies and they are a huge oil producer. Why not bomb Qom? That'll teach those darned mohamedans! </sarc>

[bert]

The fact they are selling does not mean someone is buying.

[CathyWhite]

How ‘bout we ban foreign oil completely? What happened to ‘energy independence’?

[BatGuano]

$1.63 here in FL. Might go lower but no place to go...
Supply and Demand rule the price of goods.
Of course if you live in Californicateville, you are paying an evil gas tax, like no other state has. There is one station whose price is 199. For 36 cents /22+ gal. = $8.00, it’s worth the detour of a mile or two. My Navigator gets 15-16 mpg, so I need the 8 bucks. LOL

[1Old Pro]

In New York, the state gas tax is 45.6 cents per gallon. Feb 8, 2019

[Svartalfiar]

Turn those tankers around. We are full up. Let the sand-monkeys drink their oil.

Sorry...all our oil terminal workers are off sick with a virus infection.

Actually, many of the refiners have started slowing down because they're running out of storage for finished products. If gas and diesel isn't moving out, crude isn't going to be moving in.

[dennisw]

“WTI is at $1.50. It is cheaper than a coke.”

I heard on radio it actually went into negative territory. You have a large backyard to place 100 barrels of oil? They will pay you to take the crude oil off their hands.