Posted on 04/24/2020 6:29:21 AM PDT by Enlightened1
By now even the 165,727 "professional investors" who are long the USO ETF on the free, glitch-prone platform Robin Hood, are aware that the problem facing global oil production is that there is simply no storage where to put all the physical oil (as we warned in late March).
And if even the army of Robinhood-ers now know how impossible it is to find space for physical oil on the continental US, then Saudi Arabia - which sparked the current crude crisis and which will not stop until shale is completely crushed - is certainly aware.
Which is why with the US unable to store its own output, some 50 million barrels of Saudi oil are on their way to the United States and due to arrive in the coming weeks, piling even more pressure on markets already struggling to absorb a glut of stocks, Reuters and MarineTraffic reported.
Shipping data showed the more than 20 supertankers - each capable of carrying 2 million barrels of oil - were sailing to key U.S. terminals, especially in the U.S. Gulf. Three separate tankers, also chartered by Saudi Arabia, were currently anchored outside U.S. Gulf ports.
According to Reuters sources, the kingdom had tried to seek storage options for the cargoes from tanker owners when the ships were chartered last month, but many pushed back given booming rates and not wanting tied up vessels.
The result was an outpouring of anger from the increasingly political hedge fund manager, Kyle Bass, who tweeted earlier that "the Saudis and Russians have declared war against US shale energy companies. It seems they weren't happy with American energy independence.
(Excerpt) Read more at finance.yahoo.com ...
I guess they didn’t need that oil field Iran destroyed and we were supposed to go to war over, interesting
“Does that mean somebody here bought the oil?
- Maybe, there is not a lot of detail in the story
50 million barrels of oil we don’t evidently need are on there way here how?
- It could have been ordered well in advance, that is what the futures contracts are all about.”
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It was NOT bought by anyone who actually wanted to take delivery. It was sold to speculators gambling on favorable price fluctuations. It has been bought and sold many times from and to other speculators.
It's $1.35 in Texas.
A lot of the comments are why are we accepting the product. Here’s a history of it and part of the graft involved:
https://en.wikipedia.org/wiki/Oil-for-Food_Programme
It indicates the OFF program ended, but it never really did as the bribes kept coming to this day as there are still two Saudi Arabian oil companies that are still producing and selling hot oil to us which we diplomatically are forced to accept even though we are one of the top three exporters of petroleum products in the world.
A little long but there’s an illegal action at every turn. I’m not a big fan of wikipedia but they’ve got this one pretty correct. They, at least, admitted this is a Clinton project his administration made up and he pushed in the 1995 as reparations....welfare.
rwood
Exactly! The Saudis don’t just “send” 50M barrels of oil.
Someone bought, and paid for those shipments.
“...which sparked the current crude crisis and which will not stop until shale is completely crushed”
This is the goal of OPOC and Russia but shale will be crushed only if we let it. Since oil is absolutely necessary for national security it will and should be protected by any means necessary.
.99 cents in Searcy Ar. where my son lives.
Maybe there could be a few well placed missiles into the Saudi oil fields to knock them out for a while. Where are the Iranian terrorists when you need them?
The President knows that the proper thing to do is to tariff on imported oil but Free Traitors™ ideologues in the GOP “leadership” ( I use that term loosely ) won’t let him.
Good time for us to start to get out of the ethanol monstrosity.
The US cannot store, and cannot process the incoming crude.
At any price.
Whatever is aboard ships right now, or in tanks already, can only be downloaded when consumption resumes.
Now that we need them, where are the Buick Roadmasters and the Lincoln Town Cars? Or even the fleet of commercial air liners that once plied the skies?
“Thanks for the “edu-ma-cation””
Didn’t mean to come across condescending, I did use the phrase “could have been” so I am not sure what the full story is in this case, and any mention I have seen of this story has been very light on details.
Oil is a global commodity. Supply and demand govern the market. Demand has almost decreased by 50%. The Saudis and Russians depend heavily on oil revenue to exist. It is difficult to shut down major portions of the oil infrastructure. The only way to change things is to cut down on production and/or increase demand.
The amount of oil on the water is the result of a massive shut down of the global economy. The oil on tankers was put there long before the shutdown. The world consumed 90 million bbls of oil a day before the pandemic. To meet such demand, you have to have a huge amount of oil in transit, hence the glut. Shutting down production will not solve the immediate problem. The fastest way is to reopen our economy.
Fake news
When dividing 150 by 3 and then adding 49 and taking the square root multiplied by 13, the writer gets 11.386.
Use it to fill a moat on the southern border and then light it on fire as a warning to others.
So buy it at cents on the dollar and replace our strategic oil reserve Obama sold off for cash.
That’s a good question. My oil and gas is not sold until it’s in the possession of the buyer. With that said it could just as well be under contract where the refinery agrees to take x million barrels for 3 to 6 months.
During the Carter 70’s oil shortage some gas station attendants dressed in Arab garb to lighten the atmosphere a little.
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