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:
B******t. Live there. Busy port, customs issues, traffic issues etc.
All very accurate EXCEPT “our reserves are full to the brim”. The glut that Wall Street keeps shouting about is just not true. With slowed global production, natural well attrition and global demand we fall significantly short with supplying the demand (some say up to 600,000 barrels short). As resent as the close of market yesterday analysts were “leaking” information that we are well into our reserves and lack production to fill this use. If the actual people who drill for and produce oil (petroleum based products) could provide real numbers then maybe Wall Street hacks would not have such a direct and negative impact on the global financial powerhouse of OIL!
But we are not in a glut. We are in our reserves. We cannot get back to producing the supply demanded by consumers due to work force attrition. This my friend will cause oil to sky rocket in price. Some reliable analysts (not Wall Street) are looking at $150 to $200 a barrel oil by end of this year. Even with Iran’s production on the market.
Buckle up for a rough ride!
https://www.eia.gov/petroleum/supply/weekly/ The US Energy Information Agency shows the backlog in Table 1. The total US oil storage currently is 1,225.0 million barrels and on average is increasing between 3 to 4 million barrels.
Ron Lansford
This is not good for people in the oil business here in Texas.
All while gas prices RISE
We have had the technology for years of cars that are power by water!
Fred Murphy if they were shooting for clean, they sure picked the wrong fuel!
Diesel is not “refined” more, the price remains high to control cost of goods. Diesel is closer to oil than gas which means less process. Where are y’all getting these facts?
Old news….vote Trump!
There is an OPEC meeting this weekend to discuss reducing production numbers. This has been discussed since January. The big numbers are the dropping US production below 9 million as rig counts drop and lowering global output.