Worldwide tankers can’t drain the oil – there is no demand

Near a number of major oil and transshipment ports around the world have anchored hundreds carrying oil tankers. Experts believe that this is due to the crisis in the oil market – it is not profitable to sell, and may – no time to merge.

In connection with the pandemic coronavirus COVID-19 fell sharply the demand for oil began to stop enterprises ceased to fly the planes, and even cars departed to the isolation the citizens are much less. In the end, the price of oil began to fall, despite OPEC countries signed a+ agreement on the reduction of production volumes. But the oil sometimes does not buy even at really bargain prices! Black gold is rapidly devalued in the eyes.

Photo: taxfree.livejournal.com

“On the map RAID before Singapore. Red dots, oil tankers, writes in his LiveJournal taxfree. The Strait of Malacca, one of the world’s most important waterways, which transports about a quarter of all offshore oil mainly from the Persian Gulf to China. There is a region where vessels are very close to each other forming a whole lake of oil.”

The blogger notes that usually the oil starts to be stored in tankers, when the price of it – distant futures higher than current. And so, perhaps, this is a good sign – aware entrepreneurs in the oil business”know something” – whether will soon begin to weaken quarantines and the economy will work, then it will happen something important, and the price of oil will go up again. But maybe the oil have nowhere to drain.

Photo: taxfree.livejournal.com

“A similar situation on the port roads Galveston in Texas. Tankers also accumulate and not unload point without direction means that the ships in the Harbor, at anchor and not moving. Most likely they have nowhere to unload -there is no demand – free containers is also not” – said the blogger.

And the cards of the current situation near Novorossiysk in southern Russia and near oil port in Saudi Arabia, the situation in the Persian Gulf.

As Chairman of the Board of Directors of JSC “Petersburg oil terminal” Michael skigen, Russia has virtually no free tanks for storage of oil and oil traders do use tankers, freight, which in places rose in price seven times. As the storage tanks are already considered rail cars that operators perevozki ready to provide oil. To stop the operation of the refinery is impossible, because they are enterprises of a continuous cycle.

© 2020, paradox. All rights reserved.