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BP's Stunning Warning: "Every Oil Storage Tank Will Be Full In A Few Months"
BP's Stunning Warning: "Every Oil Storage Tank Will Be Full In A Few Months" | Zero Hedge
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On Wednesday, BP CEO Robert Dudley - who earlier this month reported the worst annual loss in company history - is out warning that storage tanks will be completely full by the end of H1. "We are very bearish for the first half of the year," Dudley said at the IP Week conference in London Wednesday. "In the second half, every tank and swimming pool in the world is going to fill and fundamentals are going to kick in," he added. "The market will start balancing in the second half of this year.”
Maybe. Or maybe excess supply will simply be dumped on the market once all the "swimming pools" are full.
If that happens, don't be surprised to see crude crash into the teens as attempts to clear and dump excess inventory spread like wildfire across the market.
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So buckle up, because the collapse in the world's most financialized of commodities has further to go, and once the entire US shale space goes bankrupt, it will emerge debtless only to start drilling and pumping anew prompting the Saudis to continue to ratchet up the pressure in an endless deflationary merry-go-round.
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"Peak oil" my ass...
The world is awash in oil.
It has been and will be for the foreseeable future...
However, that doesn't mean it shouldn't be conserved.
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