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Incoming 50 Million Barrel ‘Saudi Oil Bomb’ Could Send Prices Even Lower
Yahoo Finance ^ | 04/24/20

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 ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events; Politics/Elections
KEYWORDS: barrel; oil; prices; saudiarabia
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To: 11th_VA

I guess they didn’t need that oil field Iran destroyed and we were supposed to go to war over, interesting


21 posted on 04/24/2020 6:55:33 AM PDT by datricker (Cut Taxes Repeal ACA Deport DACA - Americans First, Build the Wall, Lock her up MAGA!)
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To: FewsOrange

“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.”
************************************************************
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.


22 posted on 04/24/2020 6:57:06 AM PDT by House Atreides (It is not a HOAX but it IS A PRETEXT)
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To: Durbin
I’m already paying $2.50/Gallon here in Cali.

It's $1.35 in Texas.

23 posted on 04/24/2020 6:59:39 AM PDT by ShadowAce (Linux - The Ultimate Windows Service Pack)
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To: Enlightened1

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


24 posted on 04/24/2020 7:00:07 AM PDT by Redwood71
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To: FewsOrange
- It could have been ordered well in advance, that is what the futures contracts are all about.

Thanks for the "edu-ma-cation". If it was ordered, and/or there was a contract, it seems to me the fault would be with the buyer rather than the seller.

But I don't know much at all about this stuff. I'll just watch the thread and try to learn.
25 posted on 04/24/2020 7:01:57 AM PDT by mmichaels1970
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To: Blood of Tyrants

Exactly! The Saudis don’t just “send” 50M barrels of oil.
Someone bought, and paid for those shipments.


26 posted on 04/24/2020 7:02:54 AM PDT by Fireone (Build the gallows first, then the wall!)
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To: Enlightened1

“...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.


27 posted on 04/24/2020 7:04:11 AM PDT by billyboy15
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To: ShadowAce

.99 cents in Searcy Ar. where my son lives.


28 posted on 04/24/2020 7:05:28 AM PDT by US_MilitaryRules (I'm not tired of Winning yet! Please, continue on!)
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To: allendale

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?


29 posted on 04/24/2020 7:07:23 AM PDT by Rdct29 (Democrats are the new Nazi's. They think they deserve total control over the people)
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To: okkev68

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.


30 posted on 04/24/2020 7:09:00 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Enlightened1

Good time for us to start to get out of the ethanol monstrosity.


31 posted on 04/24/2020 7:09:58 AM PDT by 9YearLurker
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To: Blood of Tyrants

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?


32 posted on 04/24/2020 7:10:35 AM PDT by alloysteel (Freedom is not a matter of life and death. It is much more serious than that..)
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To: mmichaels1970

“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.


33 posted on 04/24/2020 7:10:40 AM PDT by FewsOrange
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To: Enlightened1

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.


34 posted on 04/24/2020 7:12:56 AM PDT by kabar
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To: Enlightened1

Fake news

When dividing 150 by 3 and then adding 49 and taking the square root multiplied by 13, the writer gets 11.386.


35 posted on 04/24/2020 7:13:49 AM PDT by bert ( (KE. NP. N.C. +12) Progressives are existential American enemies)
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To: FewsOrange
Didn’t mean to come across condescending

You didn't. That's just how I like to type (I'm the self-deprecating type). Absolutely no offense taken and I appreciate your response.
36 posted on 04/24/2020 7:17:45 AM PDT by mmichaels1970
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To: Enlightened1

Use it to fill a moat on the southern border and then light it on fire as a warning to others.


37 posted on 04/24/2020 7:19:28 AM PDT by glorgau
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To: Enlightened1

So buy it at cents on the dollar and replace our strategic oil reserve Obama sold off for cash.


38 posted on 04/24/2020 7:26:39 AM PDT by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: Blood of Tyrants

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.


39 posted on 04/24/2020 7:30:33 AM PDT by Dusty Road (")
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To: donozark

During the Carter 70’s oil shortage some gas station attendants dressed in Arab garb to lighten the atmosphere a little.


40 posted on 04/24/2020 7:30:51 AM PDT by Cold Heart (.)
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