• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour Thugs in Trumpistan
  • 41 mins Model 3 cheaper to buy than BMW 3 series.
  • 2 hours Would bashing China solve all the problems of the United States
  • 5 hours Pompeo's Hong Kong
  • 2 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 21 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 3 hours Natural gas is crushing wind and solar power
  • 13 hours China’s Oil Thirst Draws an Armada of Tankers
  • 3 hours Coronavirus hype biggest political hoax in history
  • 5 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 12 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 7 hours Michael Moore's Controversial "Planet of the Humans" Movie
  • 8 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
Oil Prices Are Unlikely To Break $40 This Year

Oil Prices Are Unlikely To Break $40 This Year

Despite production cuts from OPEC+…

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

Oilprice - The No. 1 Source for Oil & Energy News