Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Oil price may fall to $10 a barrel as world runs out of storage space
Source: The Guardian
Oil price may fall to $10 a barrel as world runs out of storage space
Facilities thought to be 75% full with Saudi Arabia due to ramp up output as demand falters amid coronavirus shutdowns
Jillian Ambrose
Wed 25 Mar 2020 06.00 GMT
Last modified on Wed 25 Mar 2020 20.30 GMT
The world may soon run out of space to store its extra oil as Saudi Arabia prepares to increase its fossil fuel production even as global demand for energy continues to fall due to the Covid-19 pandemic.
Oil storage levels across the world’s storage facilities have climbed to about three-quarters full on average since the January shutdown of major refineries in China’s industrial heartlands to stem the outbreak of the coronavirus.
The oil industry is expected to keep filling oil storage with crude in the weeks and months ahead as the pandemic’s economic contagion spreads through the rest of the world, cutting demand for natural resources including oil.
Canada may be days away from running out of storage for its domestic oil production, according to analysts at energy consultancy Rystad Energy, and the rest of the world may follow suit in a few months.
-snip-
The hunt for affordable oil storage will be made more difficult after Saudi Arabia’s “vessel booking spree”, which has pushed freight rates “through the roof” in the past three weeks, the analysts said.
-snip-
Facilities thought to be 75% full with Saudi Arabia due to ramp up output as demand falters amid coronavirus shutdowns
Jillian Ambrose
Wed 25 Mar 2020 06.00 GMT
Last modified on Wed 25 Mar 2020 20.30 GMT
The world may soon run out of space to store its extra oil as Saudi Arabia prepares to increase its fossil fuel production even as global demand for energy continues to fall due to the Covid-19 pandemic.
Oil storage levels across the world’s storage facilities have climbed to about three-quarters full on average since the January shutdown of major refineries in China’s industrial heartlands to stem the outbreak of the coronavirus.
The oil industry is expected to keep filling oil storage with crude in the weeks and months ahead as the pandemic’s economic contagion spreads through the rest of the world, cutting demand for natural resources including oil.
Canada may be days away from running out of storage for its domestic oil production, according to analysts at energy consultancy Rystad Energy, and the rest of the world may follow suit in a few months.
-snip-
The hunt for affordable oil storage will be made more difficult after Saudi Arabia’s “vessel booking spree”, which has pushed freight rates “through the roof” in the past three weeks, the analysts said.
-snip-
Read more: https://www.theguardian.com/business/2020/mar/25/oil-price-may-fall-to-10-a-barrel-as-world-runs-out-of-storage-space
4 replies
= new reply since forum marked as read
= new reply since forum marked as read
Kick in to the DU tip jar?
This week we're running a special pop-up mini fund drive. From Monday through Friday we're going ad-free for all registered members, and we're asking you to kick in to the DU tip jar to support the site and keep us financially healthy.
As a bonus, making a contribution will allow you to leave kudos for another DU member, and at the end of the week we'll recognize the DUers who you think make this community great.