The world is running out storage facilities
The world is running out storage facilities for surging supplies of oil and may soon exhaust tanker space floating offshore, raising the chances of a violent plunge in crude prices over coming weeks, experts have warned.
Goldman Sachs told clients that the increasing glut of oil on the market, together with mild weather due to an abnormally strong El Nino this winter, could send prices plummeting to $20 a barrel, the so-called ‘cash cost’ that forces drillers to abandon production. “Risks of a sharp leg lower remain elevated,” it said.