When the coronavirus pandemic destroyed global crude oil demand, supply was slow to respond until dramatic actions were taken. Now, with demand picking up at a rapid rate, supply is again being outpaced by its counterpart drawing down crude oil inventories around the world. While global forecasting agencies and oil companies alike predict slow demand growth to pre-pandemic levels, the supply picture will continue to lag behind well into the foreseeable future.
Members of the group dubbed OPEC+ have (nearly) come to an agreement upon global production cuts, but the market has failed to respond. Does this spell disaster for the industry?
Will Thursday’s OPEC+ meeting lead to global production cuts or will talks fall apart and end without a deal?
Action must be taken in order to bring supply and demand back into balance by imposing production quotas. The Texas Railroad Commission is the only domestic governing body that has the immediate power to prorate production, and thus the only entity that has the power to save this drowning industry.
With the world increasingly oversupplied due to a global pandemic and overproduction flooding the market, crude is being forced into storage in hopes of a future when prices begin to stabilize. The only problem – storage is reaching capacity.
In this episode your host Tavis talks about how he is out of toilet paper, supertankers are making BANK, and the Saudi Prince’s choice to detain friends and family. A