The Perfect Storm For Oil Hits In Two Months: US Crude Production To Soar Just As Storage Runs Out

The Perfect Storm For Oil Hits In Two Months: US Crude Production To Soar Just As Storage Runs Out (ZeroHedge, March 21, 2015):

At the current rate of record oil production, storage will be exhausted in under two months, some time in mid-May. At that point, with no more storage to buffer the record oil production, the open market dumping begins and prices of WTI will crater as every barrel will have to be sold at any clearing price, since the producers will have no other choice than to, literally, dump the oil. In other words, a perfect storm is shaping up for oil some time in late May, early June. And then we learned something even more startling.

1 thought on “The Perfect Storm For Oil Hits In Two Months: US Crude Production To Soar Just As Storage Runs Out

  1. Hard to believe nobody is prepared for that possibility. I understand those in the oil industry who want to wipe out the fracking freaks, I agree with them 100%…….but, someone is preparing for this possibility. It is too volatile a market to not have people inside it preparing for any possibility.

    However, if oil is just responding to the real economy at long last…..then it won’t be so easy for it to recover. If falling oil prices are at long last an honest response to the real world economy, then it won’t be so easy to rebuild it. Gas prices will fall below $2.00 a gallon, and the entire industry (seemingly invulnerable to the real market until now) may follow the deflation happening all over the world.

    The greatest weakness in the world economy is the over leveraged condition of currencies, stocks, bonds………very scary.

    Again, I am reminded of what FDR’s Federal Reserve chairman said when asked in 1952 what caused the Great Depression, Marriner Eccles said:
    “As in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could only stay in the game by borrowing. When their credit ran out, the game stopped.”

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