Dozens of oil tankers await anchoring on the North American coasts, as there is nowhere to take the oil barrels transported.
According to Kpler SAS data, dozens of oil tankers have anchored to the west coast of the USA. These tankers hold 20 million barrels of crude oil. This also means that Turkey’s almost as oil idly stand to meet the 20-day crude oil consumption.
No Place to Take
As oil prices continue to drop, producers cannot find someone to buy it. The bad thing is, the producers don’t know where to take this oil. Because many oil tankers and tanks are already full.
The producers, who cannot find a place to store the oil they hold, keep some of this oil in the tankers. These tankers are waiting anchored to the west coast of the USA. According to Bloomberg’s report, some of these tankers have been anchored for almost 7 days.
Many governments offer people not to go out on the streets and stay home because of the coronavirus. That’s why oil consumption around the world has drastically decreased.
If the coronavirus cannot be brought under control in a short time and oil producers cannot adjust their production according to the current conditions, harder days may be waiting for the oil market. The futures price of oil for May had already declined recently. If this retention problem in the oil market cannot be resolved, the futures in June will continue to lose value.