Oil price energy storage

What are crude oil and petroleum product prices?

Crude oil and petroleum product prices are the result of thousands of transactions taking place simultaneously around the world at all points in the supply chain—from the crude oil producer to the individual consumer. Oil markets are essentially a global auction—the highest bidder will win the available supply.

What's going on with energy storage?

It has created an extreme demand shock in energy markets, with storage space — both onshore and offshore — quickly filling up. In the U.S., the situation is thought to be particularly acute, with storage facilities at the country's main delivery point in Cushing, Oklahoma expected to be full within weeks.

Can crude oil be stored on floating tankers at sea?

In any case, if storage tanks are full and it is not possible to store crude on floating tankers at sea, analysts expect producers to start shutting in wells — a process that can physically damage reservoirs and threatens the prospect of reviving future output. Could WTI at Cushing cease to exist?

What is oil spare capacity?

The U.S. Energy Information Administration (EIA) defines spare capacity as the volume of oil production that can be brought online within 30 days and sustained for at least 90 days. Essentially, spare capacity is the difference between a country's current oil production and its maximum oil production capacity.

Are oil traders looking for alternative storage options?

Oil traders are scrambling to find alternative storage options for crude both on land and at sea, Reuters reported on Friday, citing unnamed shipping sources, with an estimated record of 160 million barrels of oil now held in floating storage on ships.

How do I estimate working storage capacity utilization?

To estimate current working storage capacity utilization, we compare weekly reported crude oil stocks (excluding pipeline fill and estimated barrels in transit by tanker ship, barge, rail, or truck) with the latest available monthly refinery and tank farm storage capacity.