Globally we have spent the past few years producing a few million barrels of oil every day than we use. Where that oil goes, are the strategic reserves. Government owned oil that is sat on in case of emergency. The US unsurprisingly has the largest reserve at just shy of 700 million barrels. China has a few hundred million right now, and is buying as much oil as they can right now to push theirs up to a half billion barrels. And Japan who has over five hundred million barrels of storage. Having these full is a good thing. They allow for security in case of massive disruptions, or general Saudi dickery. They are also part of when led to the massive price collapse last year. When Cushing (the main US storage hub) was getting full, it started a panic about running out of global storage. That fear failed to pan out, but it did shed light on the global overproduction levels.
No comments:
Post a Comment