With storage tight on land, there are an estimated 80 million barrels of oil being held in large tankers offshore, said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.
"We're filling up every crevice of storage that anybody can find," he said. "The pipelines are filled up, the terminals are filled up. Refiners are amply supplied. This is a market that definitely has a surplus."
If crude at sea has reached 80 million barrels, it could supply nearly the entire globe for a day.
Despite my bearishness on crude, I will concede that Exxon might not be the greatest of shorting opportunities since it has more than $35 billion in cold hard cash just sitting on its B.S. (perfectly timed for a shopping spree), but I do think XOM should be trading below $65.
No comments:
Post a Comment