US Department of Energy picks up excess oil

US, WASHINGTON (ORDO NEWS) — The US Department of Energy has opened a strategic repository for US companies. Such a measure will allow enterprises to store produced fuel. In the current conditions of extremely low demand, oil companies simply have nowhere to store their oil. Available vaults are full.

The country’s Strategic Oil Reserve has a maximum load of 713.5 million barrels, and currently holds about 635 million barrels.

At the same time, the US Department of Energy predicts that in the second quarter of the year, the market surplus will amount to almost 11.5 million barrels per day – this is the highest level in the entire history of observations.

The reduction of world reserves, according to the agency, will begin only in the IV quarter. Following the results of the next year, the decrease in reserves will amount to 1.7 million barrels per day.

Recall that on Thursday an online meeting of OPEC + countries and other oil-producing countries will take place, at which the parties will try to come to an agreement to reduce production, and an emergency meeting of G20 energy ministers is due on Friday.

Curiously, the American regulator does not expect results from this meeting. On the contrary, they believe that the parties will not agree, and the OPEC countries will continue to increase production.

However, forecasts do not always come true, and there is no sense in such actions.

The budgets of many countries are almost completely dependent on oil and gas revenues, and the longer the prices are low, and also in conditions of low demand, the more difficult it will be to make ends meet.

In addition, do not forget that the situations on the futures market and the physical oil market are now diverging: real barrels are now much cheaper.

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