Global production has been exceeding consumption for a few years now. So what is happening to that extra oil? It's been going into storage. Most people only look at Cushing numbers and assume that the US is taking on most of it. And the US has added a lot. Since the beginning of 2014, the US has added about 150 million barrels to its reserves. But it's actually been China who has taken the majority. They have added around 350 million barrels to their strategic reserves in the past year and a half, and have no signs of stopping. They are taking on so much that it's causing a traffic jam of tanker ships in all of their ports. Oil is being delivered faster than they are able to offload it. To the point where decommissioned ships are being floated out to act as storage, just to help ease the backlog.
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