Editorials & Other Articles

bemildred

(90,061 posts) Mon Feb 8, 2016, 07:45 PM Feb 2016

Oil industry woes grow as storage levels hit ‘critical level’

The storage tanks at Cushing, Okla., the delivery point for the New York Mercantile Exchange crude contract, are edging closer to their limits, raising a new set of problems for an industry that has already suffered from a 70% drop in prices in the past year and a half.

Cushing, which represents about 13% of the nation’s oil storage, has a working capacity of about 73.014 million barrels of crude oil, according to data from the Energy Information Administration.

As of the week ended Jan. 29, there was 64.174 million barrels of oil in storage at Cushing, so it is at about 88% full.

“Where inventories count the most—at the Nymex terminal complex in Cushing, Oklahoma—storage is already at a critical level,” said Stephen Schork, in The Schork Report published Monday. “Approximately 6 out of 7 barrels available storage capacity at the Nymex hub are now full.”

http://www.marketwatch.com/story/oil-industry-woes-grow-as-storage-levels-hit-critical-level-2016-02-08?siteid=bigcharts&dist=bigcharts

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Oil industry woes grow as storage levels hit ‘critical level’ (Original Post) bemildred Feb 2016 OP

Published: Mar 5, 2015 4:53 p.m. ET:: Storage dearth may drive oil prices to $30 bemildred Feb 2016 #1

I'd already heard, a month or more back, that ships carrying oil were 'backing up' and deliberately Erich Bloodaxe BSN Feb 2016 #2

And to think Iran has Wellstone ruled Feb 2016 #3

Yeah, to think of that. bemildred Feb 2016 #4

Everyone thinks you can just shut Wellstone ruled Feb 2016 #5

I don't pay a lot of attention to oil, but it seems like a massive game of chicken is going on, bemildred Feb 2016 #6

We wish,these mega money people are Wellstone ruled Feb 2016 #7

bemildred

(90,061 posts)

1. Published: Mar 5, 2015 4:53 p.m. ET:: Storage dearth may drive oil prices to $30

Reply to bemildred (Original post)

Mon Feb 8, 2016, 07:47 PM

Feb 2016

Somebody deserves a raise.

SAN FRANCISCO (MarketWatch) — As the U.S. runs out of space to store its glut of crude-oil supplies, prices for the commodity could sink to as low as $30 a barrel.

When storage is full, there is pressure on those holding oil in storage to “dump that inventory,” said Charles Perry, chief executive officer of energy-consulting firm Perry Management. So a space shortage could cause a drop in prices to the $30 to $40-per-barrel range, he said.

West Texas Intermediate crude US:CLJ5 — the U.S. benchmark — has already seen its prices halved from a year ago. A cost of $30 per barrel of oil represents a 40% drop from the current level, which stands near $51.

At Cushing, Okla., the “mecca” of oil storage in the U.S., “the Motel 6 may have a vacancy sign out, but the storage terminals really don’t,” said Kevin Kerr, president of Kerr Trading International.

http://www.marketwatch.com/story/storage-dearth-may-drive-oil-prices-to-30-2015-03-05

Erich Bloodaxe BSN

(14,733 posts)

2. I'd already heard, a month or more back, that ships carrying oil were 'backing up' and deliberately

Reply to bemildred (Original post)

Mon Feb 8, 2016, 08:10 PM

Feb 2016

being slowed down to prevent them delivering too soon. They're simply running out of places everywhere to store all the oil they've been pumping out of the ground.

Wellstone ruled

(34,661 posts)

3. And to think Iran has

Reply to bemildred (Original post)

Mon Feb 8, 2016, 08:14 PM

Feb 2016

some 16-18 million barrels headed towards the U.S..

bemildred

(90,061 posts)

4. Yeah, to think of that.

Reply to Wellstone ruled (Reply #3)

Mon Feb 8, 2016, 08:31 PM

Feb 2016

We have an oil glut.

Wellstone ruled

(34,661 posts)

5. Everyone thinks you can just shut

Reply to bemildred (Reply #4)

Mon Feb 8, 2016, 08:39 PM

Feb 2016

things off and turn them on when you need it,not going to happen,does not work that way. It's all about the Saudi's trying to save their ass.

bemildred

(90,061 posts)

6. I don't pay a lot of attention to oil, but it seems like a massive game of chicken is going on,

Reply to Wellstone ruled (Reply #5)

Mon Feb 8, 2016, 09:17 PM

Feb 2016

The more likely outcome is they will all lose their ass.

Wellstone ruled

(34,661 posts)

7. We wish,these mega money people are

Reply to bemildred (Reply #6)

Mon Feb 8, 2016, 10:01 PM

Feb 2016

draining all the Pensions and 401's as well as IRA's by using short sales. Notice zero talk about all the Trillions lost to the average Joe and Jane's.

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