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 ...
Save our jobs, protect our workers, raise huge revenues and do it now sir.
Trump has said nothing negative about them which makes me wonder if MBS is acting as a proxy for him to put pressure on Iran, Russia, Venezuela, etc.
Has someone already agreed to accept the shipments?
I have been puzzled by his lack of comments on the oil situation. I am sure he understands how much extra damage is being done to the economy, so I have to believe something is going on behind the scenes. Just wish we knew what it was.
I’ve never trusted men that wear fan belts and shop towels on they’re heads.
Bloomberg: Trump Developing Plans to Aid Oil Despite Democrats’ Opposition
The Saudis cannot maintain their society if the price of oil remains this low. There will be hunger, disruption of their supply networks, social and political unrest. Sorry but cannot generate any sympathy for the 9/11 Saudis.
Wouldn’t it be much cheaper to just pay a bunch of Somalis to hijack the ships?
“...fund manager, Kyle Bass, who tweeted earlier that “the Saudis and Russians have declared war against US shale energy companies....”
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I haven’t seen a single tanker with Russian oil. What I see is an endless stream of tankers WITH SAUDI OIL. I see the real enemy!
Yeah, the Suadis can only afford three AMG Mercedes now instead of 5.
Russia doesn’t have good port access. I’d expect most of their oil gets piped to Europe and/or China.
Problem is, they have enough cash to 'weather this' for a few years
The Saudis brought a suicide vest to the oil markets.
And wear drapes from their mother’s dining room.
I’m not 100% certain how the delivery market works but this oil was purchased months ago before Russia started the production war with Saudi.
Saudi flooded the market with oil and put the hurt on all producers. They beat the Russians to it.
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.
I’m already paying $2.50/Gallon here in Cali. If it goes any lower, I’ll be getting the gas for free and only paying taxes on it. LOL!!!!!
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