/biz/ - Business & Finance

>>19143715
Still kind of retarded that the burden falls on the taxpayer for an oil supergiant that couldn't keep its dick in its pants. It would blow my fucking mind if congress passed subsidies for oil storage, but it's certainly not outside the realm of possibility. This whole situation is so fundamentally and utterly fucked I don't know how tankers don't win.

>>19143782
Honestly, to your point, I am willing to forfeit my scenario in case of greedy corporations being extremely naive and over-pumping again. It's happened before, and will no doubt happen again. When oil reaches $40/bbl and shale decides it's time to send production levels back to normal, and manages to do so without incurring debt, well then fuck me I guess you're right. I just hope (or maybe I don't hope?) that they have learned something from this and don't act like retards again.

Also, I believe the Saudi and Russians are cutting, but the key statistic is the exports. If domestic consumption is below normal levels in 2019, they're obviously going to be exporting more, which effectively nullifies a portion their production cuts.

And if lockdown 2 happens, it's absolutely game over.

>From calvin, "Production cuts and export cuts are two different things.

Here are 5 of the major OPEC producers. Though production cuts in May were 4.8M bpd, export cuts were only 2.45M bpd.

Tanker demand and storage capacity are a function of exports, not just production."

I hate to agree to your shitty pessimism being the cause of oil overproduction, but with our society it's not far out of reach. *dissapointment*