Falling Oil Prices

Generali

Sorry, can't give a link. This is from Morgan Stanley though.

Lingering offshore West Africa according to Reuters. Some cargoes are taking more than 3 months to find buyers, and current loading programs are not selling well. As many as 6 aframaxes and 1 suezmax of North Sea crude are also waiting off the coast of Britain. If there are this many challenged cargoes in this strong demand environment, we worry about the outlook for physical oil this fall when crude runs and gasoline demand fall seasonally.

An Aframax holds 750,000 bbl oil and a Suezmax about 2-3,000,000.

So that's 6-7,000,000bbl of North Sea oil sitting in tankers off the coast of Britain awaiting a buyer. That's about a week's worth of production sitting there having to be financed and ships paid for. There are similar sitting off the coast of West Africa.

Forest fires in Canada have temporarily curtailed supply but that is due back online shortly and Iran is expected to start exporting again soon.

ruggedtoast

Good. Up to 118p at Tesco. Bandits.

purch

My Mum was telling me about a couple of large ships that had been out in the Bristol Channel for the last week or so, going nowhere.

I wasn't really listening, but I guess they could be some of these tankers.

Generali

purch wrote: »

My Mum was telling me about a couple of large ships that had been out in the Bristol Channel for the last week or so, going nowhere.

I wasn't really listening, but I guess they could be some of these tankers.

Better weather in the Bristol Channel than the North Sea I would imagine!

michaels

Generali wrote: »

Better weather in the Bristol Channel than the North Sea I would imagine!

Or closer to Milford Haven....

Mistermeaner

I work in the industry. There have several crackers in force majeure due in part to having run hard for too long with maintenance deferred. Temporary issue only and not a indicator of long term fundamental issue.

Generali

ggb1979 wrote: »

I work in the industry. There have several crackers in force majeure due in part to having run hard for too long with maintenance deferred. Temporary issue only and not a indicator of long term fundamental issue.

What's a cracker please?

chewmylegoff

Generali wrote: »

What's a cracker please?

A dry biscuit normally accompanied by cheese.

HTH

Generali

chewmylegoff wrote: »

A dry biscuit normally accompanied by cheese.

HTH

Thanks chewy.

Why would a dry biscuit be in force majeur? Run out of cheese I suspect.

purch

"That's a cracker"......................Frank Carson

Mistermeaner

Basically a big pan where oil is cooked to split it into its various derivatives