Something bizarre is happening off the coast of Galveston, Texas. Were you to look toward the sea in the Texas port town, you’d be subject to a oceanic traffic jam of epic proportions. Ships carrying oil have gathered along the coast in the Gulf of Mexico in such great quantities that ships approaching the port have been asked to move toward the town slowly in an attempt to ease the burden.
This phenomenon is directly tied to the huge amounts of oil stored internationally and in floating container ships across the world. As oil prices fall, stockpiles of the resource are going through the roof, and governments and companies don’t have anywhere else to store it.
This could cause the price of oil to fall catastrophically further, as supply far exceeds demand for the time being.
To see the full report on this strange occurrence, continue reading on the next page:
I was in Galveston a few ago, they were lined up as far as the eye could see.
they are not loaded they are setting to high in the water
No. Nixon dead. Lyndon dead. Bush sr. Not.
Beacuse, in their sometimes desperate attempts to make the big score, they are hoarding oil at the low price intending to sell at the high price. This is not something you should have apathy for, it is sheer greed.
Ugh… empty tankers… waiting for their next pay check… this is an everyday occurrence in Texas… facts don’t support your statement.
Ships are always in Galveston was there today
I used to ride those tankers what do you want to know?
Contango is a situation where the futures price (or forward price) of a commodity is higher than the spot price.
those ships aare riding high….They are empty
Where does a company put lots of extra oil? In dry oil wells.
Ronald Ragan, had vast quantities of oil pumped into dry oil wells.
There are still a lot of dry wells out there.