{"id":17584,"date":"2016-02-10T12:02:32","date_gmt":"2016-02-10T17:02:32","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17584"},"modified":"2016-02-10T12:03:52","modified_gmt":"2016-02-10T17:03:52","slug":"bps-stunning-warning-every-oil-storage-tank-will-be-full-in-a-few-months","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17584","title":{"rendered":"BP’s Stunning Warning: “Every Oil Storage Tank Will Be Full In A Few Months”"},"content":{"rendered":"

BP’s Stunning Warning: “Every Oil Storage Tank Will Be Full In A Few Months”<\/a><\/h3>\n
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It was just last week\u00a0when we said<\/a>\u00a0that Cushing may be about to overflow in the face of an acute crude oil supply glut.<\/p>\n

\u201cEven the highly adaptive US storage system appears to be reaching its limits,\u201d we wrote, before plotting Cushing capacity versus inventory levels. We also took a look at the EIA\u2019s latest take on the subject and showed you the following chart which depicts how much higher inventory levels are today versus their five-year averages.<\/p>\n

\"graph<\/p>\n

Finally, we went on to present two alarm bells that offer the best evidence yet that inventories are reaching nosebleed levels: 1) some counterparties are experiencing delays in delivering crude due to unspecified “terminalling and pump” issues (basically, it\u2019s hard to move barrels around at this point because there\u2019s so much oil sitting in storage); 2) the cash roll is negative.<\/p>\n

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On Wednesday, BP CEO Robert Dudley – who earlier this month reported the worst annual loss in company history – is out warning that storage tanks will be completely full by the end of H1. “We are very bearish for the first half of the year<\/strong>,” Dudley said\u00a0at the IP Week conference in London Wednesday. “In the second half, every tank and swimming pool in the world is going to fill<\/strong>\u00a0and fundamentals are going to kick in,” he added. “The market will start balancing in the second half of this year.\u201d<\/p>\n

Maybe. Or maybe excess supply will simply be dumped on the market once all the “swimming pools” are full.<\/p>\n

If that happens,\u00a0don’t be surprised to see crude crash into the teens\u00a0<\/strong>as\u00a0attempts to clear and dump excess inventory spread like wildfire across the market.<\/p>\n

Earlier this week, the IEA called any respite for crude prices “a false dawn.” Here’s why (via The Guardian<\/a>):<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BP’s Stunning Warning: “Every Oil Storage Tank Will Be Full In A Few Months” It was just last week\u00a0when we said\u00a0that Cushing may be about to overflow in the face of an acute crude oil supply glut. \u201cEven the highly adaptive US storage system appears to be reaching its limits,\u201d we wrote, before plotting Cushing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[11634,4333,184,441,12307,4044,600,4318],"class_list":["post-17584","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-counterparties","tag-crude","tag-crude-oil","tag-iran","tag-oil-inventory","tag-oil-storage","tag-opec","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17584"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17584\/revisions"}],"predecessor-version":[{"id":17586,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17584\/revisions\/17586"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}