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Oil tankers fill up as coronavirus crushes crude demand
Oil won’t go below $10 a barrel: Analyst
Lipow Oil Associates Andy Lipow argues as oil companies fight off bankruptcy, we will see more consolidation in the oil industry.
Oil tankers are massing off the coast of California and elsewhere as burgeoning supplies leave producers scrambling to find storage.
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“Stay-at-home” orders issued by governments worldwide to slow the spread of COVID-19 have reduced global crude demand by 30 million barrels per day, worsening a supply glut that has left the world awash in oil.
The surplus has storage capacities nearing their max, causing producers to turn to offshore supertankers as an alternative means of hoarding their crude.
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Supertankers are a “good place to park all of your crude in one place,” Stewart Glickman, an energy analyst at New York-based CFRA Research, told FOX Business. Most tankers are already accounted for, however, and “prices are through the roof” for the ones that aren’t, he pointed out.