There are 28.4 million barrels of crude sitting on VLCCs off Galveston and about 250,000 tons of Diesel sitting off Europe and the Med .This examples the Global picture apparently
Producers are not cutting production , despite alleged discussions between some of the big boys to do so .
Storage is close to capacity based on so many of the VLCCs simply not moving or slowly sailing round in circles .Floating tanks .
What happens next ?
And why ?
Saudi Arabia and the balance who make up OPEC are doing themselves no financial favours and their aim to reduce US fracking total production has not occurred. Many rigs are failing and Russia , Nigeria and Venezuela continue to be very hard hit .
Who is benefitting ?
I can understand moves against Russia as part of the wider sanctions programme but can it help any one or more of the major producers if the price moves down toward $20 again .
Is anything happening strategically or is it more about stubborn power heads refusing to be the first to blink ?
Producers are not cutting production , despite alleged discussions between some of the big boys to do so .
Storage is close to capacity based on so many of the VLCCs simply not moving or slowly sailing round in circles .Floating tanks .
What happens next ?
And why ?
Saudi Arabia and the balance who make up OPEC are doing themselves no financial favours and their aim to reduce US fracking total production has not occurred. Many rigs are failing and Russia , Nigeria and Venezuela continue to be very hard hit .
Who is benefitting ?
I can understand moves against Russia as part of the wider sanctions programme but can it help any one or more of the major producers if the price moves down toward $20 again .
Is anything happening strategically or is it more about stubborn power heads refusing to be the first to blink ?
via International Skeptics Forum http://ift.tt/1M0iMCU
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