With demand dried up in the wake of the Russian-Saudi price war and now historic plunging prices extending through Tuesday, and little to do to give prices a short-term boost given lack of buyers in a flooded market, the kingdom has been forced to store much of its oil at sea.
H/T: Zero Hedge
"At least one in 10 supertankers around the world is serving as a floating oil storage facility, Saudi oil officials say," the WSJ reports.
Oil tankers carrying enough crude to satisfy 20% of the world’s consumption are gathered off California’s coast with nowhere to go https://t.co/941dohkrOf— Bloomberg Asia (@BloombergAsia) April 21, 2020
20 tankers—filled w/ 40mm barrels of Saudi oil—are headed to the US. This is SEVEN TIMES the typical monthly flow. At the same time, oil futures are plummeting & millions of US jobs in jeopardy. My message to the Saudis: TURN THE TANKERS THE HELL AROUND. https://t.co/gYoQzvHAEQ— Ted Cruz (@tedcruz) April 21, 2020
Oil storage capacity . pic.twitter.com/Uvzvoa4xmW— CA Anupam Sharma (@caanupam7) April 22, 2020
“Capacity almost completely sold out,” says world's largest oil storage firm - WorldOil https://t.co/HIzjfmp2lt— Google News Worldwide (@WorldNewsGoogle) April 22, 2020
0$ oil in simpsons ..... pic.twitter.com/gED8qoEvsF— pesary bella (@pesarybella) April 22, 2020