There was a story on CBC radio this morning about Alberta oil producers running out of places to store their petro-production. No mention in the report that it's a problem that's happening world wide.
There's a severe oil tanker shortage. Producers and investors are now using them as floating tank farms to store oil until "better times" return. These supertankers aren't delivering oil. To where?
There is an oil production/price war underway pitting Saudi Arabia against Russia. When Russia refused to slash output the Saudis retaliated by ramping up production to insane levels given the collapsing markets.
Now the Saudis have announced yet another increase in crude oil exports to start in May. Another 600 thousand barrels a day.
The Saudis, who launched an all-out price war for market share with Russia after Moscow refused to back deeper cuts, will not only boost April exports from the current 7 million bpd, but it will also grow exports in May by another 250,000 bpd from April. Now supply is expected at 10.6 million bpd starting in May, as per the latest Saudi statement.
According to analysts, no deal can save the market right now as demand destruction could reach 20 million bpd or more in the coming weeks.