The Widespread Oil Storage Glut Everyone Is Talking About Won't Happen And Here's Why - OMF 3/20
With the coronavirus fears worsening and analysts cutting global oil demand by as much as ~20 mb/d now, analysts now fear that there will be a storage glut so big that oil prices could fall to $5/bbl.
This analysis is extremely simple-minded because it does not take into account two variables:
- Demand-driven reduction leads to lower refinery throughput and lower crude buying. If crude exporters have no one to buy the crude, the crude export won't happen. Shut-in