Things are really about to hit the fan. The world has been surviving off of strategic petroleum reserves, but those are quickly hitting the bottom. The US last reported at 285M barrels[0]. There is a legal floor of ~250M, after which it is reserved for government national defense. Usage has been all over the place, but the drawdown has been somewhere in the region of 1M barrels per day. Public analyses have said that the cavern integrity becomes threatened once levels fall below 300M. Current government claims the "real" floor is at 70M, but I believe this is a transparent ploy to assuage markets.
The Saudi pipeline that was attacked had a capacity of 7M barrels per day. Gone for who knows how long. That 7MBPD that needs to come from somewhere.
Edit: Should add - the big tankers require ~month to move oil to most consumers. So, there is one month of breathing room before the new pipeline loss materializes.
The Saudi pipeline that was attacked had a capacity of 7M barrels per day. Gone for who knows how long. That 7MBPD that needs to come from somewhere.
Edit: Should add - the big tankers require ~month to move oil to most consumers. So, there is one month of breathing room before the new pipeline loss materializes.
[0] https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W...