When oil storage levels reach critically low thresholds, prices don't gradually increase but instead spike sharply because the available supply becomes extremely limited; with only about 800 million barrels of the 8.4 billion barrels in global storage actually available (the rest being unusable 'tank bottoms' at the bottom of tanks and pipelines), the market becomes highly vulnerable to sudden price surges.
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Oil Price Set to SKYROCKET: The Shocking Truth Revealed! #shortsAñadido:
When that floor hits, the price doesn't drift up, it snaps. Exxon Mobil and Chevron, the two biggest oil companies in America, both stepped out with the same warning. Exxon's Neil Chapman, direct quote, "We are approaching unheard of inventory levels. Once you get to that really low level, up to a 150 to 160 dollars a barrel. 160 within weeks." From the leadership of Exxon and Chevron. Now, here's the number that makes it real. JP Morgan ran the math of the 8.4 billion barrels of oil in storage worldwide, only about 800 million are actually available before the system seizes up.
The rest is tank bottoms. Oil at the bottom of every tank and pipeline that physically cannot come out. It's not inventory, it's plumbing. So, when they tell you inventories are fine, the super majors are telling you, "We're burning through the only barrels that can move."
And when that floor hits, the price doesn't drift up, it snaps.
And that's the only supply side
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