President Trump discussed the recent phenomenon of negative oil prices, where producers pay to have oil taken away. He expressed interest in filling the Strategic Petroleum Reserve and charging for storage while the market is oversupplied.
3 chapters across the catalog
President Trump discussed the recent phenomenon of negative oil prices, where producers pay to have oil taken away. He expressed interest in filling the Strategic Petroleum Reserve and charging for storage while the market is oversupplied.
Oil prices have dropped below $50 a barrel, leading trading companies to store excess supply in "tank farms" in hopes of a future price increase. The hosts explain that many oil companies are still profitable because they "hedged" their production with futures contracts at higher prices last year. They predict a further price crash once these hedges expire in the summer and storage capacity is fully exhausted.
Global Oil Logistics, China Slowdown and Indonesia Production
Through a contact at the Dutch oil storage company Vopak, Adam Curry reports a significant slowdown in oil shipments to China. The industry is reportedly shifting production focus to Indonesia, while the price of natural gas is expected to remain suppressed for two more years until Japan fully transitions its energy infrastructure.
