March 19, 2020 – Forbes
Just Six Months To ‘Tank Tops’ In Race To Store Up Cheap Oil
By Christopher Helman
Planes are grounded. Factories closed. Millions of commuters are staying at home. Coronavirus panic has cratered demand for fuels and other petroleum products by nearly 10% worldwide. Add in the extra 1 million-plus barrels per day that the Saudis and Russians have decided to pump into the market amid a marketshare war — and the global glut of crude oil is set to approach 10 million barrels per day. “This is a dual shock with almost no precedent,” notes analyst Amrita Sen of Energy Aspects, this week. Oil prices, at $25 per barrel for West Texas Intermediate, are lower than at any time since 2002…
Read the full article here: https://www.forbes.com/sites/christopherhelman/2020/03/19/just-six-months-to-tank-tops-in-race-to-store-up-cheap-oil/#2355d44d7730
…Housley Carr at RBN Energy noted this morning that however bad it gets, there will be an end. “At some point, if these market conditions continue for long enough, Cushing storage will fill to the brim too. And when that happens, the largest storage hub in the world and the delivery point for CME/NYMEX WTI futures will send price signals that enough is enough.”
