Oil in storage I just searched the number of cars in the world.
there are 1 billion of them and most run on oil.
When fuel prices are falling and expected to fall
further it is human nature to wait for that better
price and not top up the tank vs trying to squeeze in
every last drop when you expect them to be higher next
top up. However, in poor countries putting in only what
you can afford would be the norm. With falling prices one
would expect the poor to try to get the tank a little fuller to
avoid line ups so once oil stabilizes my expectation is that
one of the largest stock piles of oil will be in those 1 billion
gas tanks. 1 barrel is about 31 US gallons after distillation or
roughly two cars. So there is a lot of excess supply that can be
sopped up off the major storage tank radar screens by consumers.
so there is some minor consumer correction going on world wide to soak
up some of the over supply.
just my thoughts on a rainy Sunday afternoon.
HT