Topic: Storage Tanks

1 chapters across the catalog

Lying Weasels
Episode 705 2:19:20 - 2:22:43

705: Lying Weasels

Oil Price Crash, Storage Capacity and Hedging

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.