Oil SuplusAt these prices every stragic reserve in the world will be full to the brim shortly and then what? There are aleady barges full of oil being used as foatiing storage at $300,000 / month.
What makes the provincial oil surplus worse is allot of facilitues normally go into turnaround in the spring but most comapanies are cancelling or reducing durations of the turnarouonds to save $$ and thus putting more oil into the system.
As happens with natural gas quite often, oil will be sold at a negitve price because there are allot of large facilitues that are extremely difficult to shut down completely and starting them up in the winter would be next to impossible.
Industry needs to start curtailing production on their own and use the reservior as stroage until the price recovers.
The best solution is for Trump to get involved and tell Saudia Arabia that if this continues the US will not be covering them in the next middle east dust up that occurrs.