Remember when analyst were saying that crude oil storage tanks would fill up and that it would cause the oil price to go to $10/bbl? Stuff like that is pure crap, written by people that do not understand how well this industry is managed. "FEAR" like this is created by those wanting to move the markets. A firm with the initials GS has been doing it for years.
The glut of crude oil has prompted for some time now a fear that storage may not be able to keep pace with the speed of production in the United States. The EIA measures crude oil storage capacity twice each year, and reported today that 34 million barrels of new storage capacity (6% of total crude oil storage capacity) was added from September 2015 to March 2016, the largest expansion of commercial crude oil storage since the agency began tracking storage capacity in 2011.
Full article: http://www.oilandgas360.com/u-s-crude-s ... 0146222b2a
This "FEAR" will go away this summer: Crude oil in U.S. storage has now declined 6 of the last 7 weeks and I believe it will fall 30 to 40 million barrels by the end of September. We may see one or two weeks of small builds, but refiners are going to be pulling a lot of crude from storage to meet demand for transportation fuels. Plus, we can export refined products and South America is going to need more of it from us.
Do not give in to FEAR
Do not give in to FEAR
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group