As Saudi Arabia Boosts Oil Output, Some Tankers Have Nowhere to Go

[Tom Kirkman + 8,860]

MbS is determined to shoot himself and Saudi Arabia and OPEC in the foot.  I'm fine with that.

As Saudi Arabia Boosts Oil Output, Some Tankers Have Nowhere to Go

   The world’s largest oil exporter hits snags following through on its declaration of market war with Russia.

   Saudi Arabia is the world’s biggest oil exporter and is ramping up production.

Saudi Arabia is ramping up its oil output, boosting production capacity and hiring new tankers to fight its price war with Russia, despite the coronavirus pandemic’s erosion of demand for crude.

The world’s biggest oil exporter is producing above 12 million barrels a day, at maximum capacity, and about two million barrels a day more than a month ago, Saudi officials said.

There are signs, however, that some of this new oil has virtually no place to go. Some of the vessels the kingdom has hired to help it increase exports are leaving ports filled with oil, but have no destination, casting doubts on whether the extra crude production will end up with customers and add to a global glut.

“There are loadings [from Saudi ports in the Persian Gulf] with no destination on them because we don’t have buyers,” a Saudi official said.

Saudi Arabia’s rather aggressive moves come after it splintered with Russia over how to respond to a global outbreak of coronavirus. The production boost, aimed at grabbing market share from Russia, is compounded by the pandemic’s demand destruction. Oil prices have fallen about 70% to levels unseen since 2002 in the aftermath of the 9-11 terrorist attacks.

State-run Saudi Arabian Oil Co. has asked U.S. oil service contractors to be ready for more work, according to a contractor in the kingdom and a Saudi official. But despite heated demand for their work in the kingdom, Aramco has asked its contractors to discount their rates by 15%, they said.

 

[wrs + 893]

6 minutes ago, Tom Kirkman said:

“There are loadings [from Saudi ports in the Persian Gulf] with no destination on them because we don’t have buyers,” a Saudi official said.

Stupid, Stupid, Stupid...................

[Tom Kirkman + 8,860]

7 minutes ago, wrs said:

Stupid, Stupid, Stupid...................

Apparently, the Crown Prince believes that he is gloriously endowed by a Supreme Being with the ability to actually put 10 gallons of oil into a 5 gallon bucket.

(Tip of the hat to @William Edwards )

[wrs + 893]

Here is some good news for MBS, now he has more oil to dump because India declared force majeure on oil from KSA, UAE, Iraq and Kuwait.  So he has more floating storage to pay for.

 

https://energy.economictimes.indiatimes.com/news/oil-and-gas/ioc-declares-force-majeure-on-oil-purchases-from-saudi-uae-iraq-kuwait/74932115

Edited April 1, 2020 by wrs

[Dan Warnick + 6,100]

7 hours ago, Tom Kirkman said:

Apparently, the Crown Prince believes that he is gloriously endowed by a Supreme Being with the ability to actually put 10 gallons of oil into a 5 gallon bucket.

(Tip of the hat to @William Edwards )

As Ron White said:  You can't fix stupid.