/biz/ - Business & Finance

>>19143305
Oh the SPR is definitely not fit to handle any more oil. I'm just suggesting that they'll use whatever space that isn't occupied to store oil.

>>19143220
No matter the outcome, share prices will eventually recover. I am very convinced of this, even before corona the tanker market was being set up for a huge boom. That's just being delayed because the spread on bunker fuel has tightened and companies aren't installing scrubbers until it's economically necessary, therefore delaying the scrapping of old ships.

>>19143372
Oh I'm absolutely positive spot rates and share prices get fucked on Monday if there is no contango. We'll recover in a year or two due to other factors, but I don't see production spiking like you said for this reason and a couple others:

>"Approximately 1.5 mm b/d will be shut in from so-called “stripper wells” in the United States. These wells are extremely old and nearing the end of their productive lives. In most cases they produce less than 5 b/d each yet make up nearly 20% of total US production in aggregate. Since their production rates are so low and their water production is high, the stripper wells incur operating costs in excess of the oil price and have started being shut in already. While it is more challenging to get data on international stripper wells, we estimate another 1.5 mm b/d will be shut in from this group as well."

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