• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 min Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 day Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 9 hours Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 11 hours Modest drop in oil price: SPRs vs US crude inventory build
  • 20 hours 2019 - Attack on Saudi Oil Facilities.
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 days Ukrainian Maidan after 8 years
  • 3 days Peak oil - demand vs production
  • 3 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 4 days NordStream2
  • 4 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Nord Stream 2 Setback In Germany Could Be Short-Lived

Nord Stream 2 Setback In Germany Could Be Short-Lived

Germany could resume the certification…

Americans Blame High Gas Prices For “Bad Economy”

Americans Blame High Gas Prices For “Bad Economy”

Some 64 percent of respondents…

Pipeline Operators In Texas Urge Producers To Stop Pumping

U.S. pipeline operators have issued a warning to some oil producers operating in Texas: reduce production rates because storage is filling up, a Texas Railroad Commissioner said in a tweet.

"Got word yesterday that some Texas producers are starting to get letters from shippers (pipelines) asking for oil production cuts because they are out of storage. We need to get in front of this," Ryan Sitton wrote on Saturday.

Oil prices have continued to decline, with West Texas Intermediate trading at $20.42 a barrel at the time of writing and Brent crude at $26.64 a barrel. Upward potential remains extremely limited as the coronavirus outbreak in the United States has dampened demand for fuels. According to the EIA, demand for gasoline in the second week of March fell by more than 800,000 bpd.

Demand for fuels is likely to continue down as the number of diagnosed Covid-19 cases continues up, with the U.S. now leading the world with a total of more than 140,000 cases.

Refining margins also crashed, shedding 95 percent on a single day earlier this month, according to a Reuters report. The drop signaled pessimism about the immediate future of fuel demand in tune with expectations about oil demand.

"You're facing a situation where there's so much demand destruction from people staying home because of COVID-19 and there's so much oil flowing right now with no place to go," Commissioner Sitton told the Houston Chronicle. "The supply chain is facing a problem and it backs up all the way to the gas stations."

The storage problem is not unique to the United States. The whole world is running out of storage space for oil as the biggest buyers of the commodity are unable to take advantage of historically low prices by stocking up, because their demand has been destroyed by lockdowns and travel bans, too, and their tanks are full.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News