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50M Barrels of Saudi Crude Moving Towards U.S. With Presumably No Space To Store Them

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50M Barrels of Saudi Crude Moving Towards U.S. With Presumably No Space To Store Them

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In recent days there’s been reports that the Saudi company Bahri had sent a large number of its oil tankers to Europe and the US.

However, an analysis of GoRadar.ru shows that this isn’t exactly the case.

Regardless, there is a very large number of tankers, especially in the Gulf of Mexico.

50M Barrels of Saudi Crude Moving Towards U.S. With Presumably No Space To Store Them

Locations of all tankers around the globe. Click to see full-size image

Their flags are mainly: Bahamas, Liberia, Marshall Islands, etc. Some have Destination For Orders … that is, they expect an order only when they are already travelling towards arrival ports. There are also British, American and even Croatian flagged tankers.

It, furthermore, appears that Saudi Arabia is fully aware of this and is doing even more – currently there is a crisis of crude storage facilities in the US.

Regardless of that fact, approximately 50 million barrels of Saudi oil are on their way to the United States and due to arrive in the coming weeks, piling even more pressure on markets already struggling to absorb a glut of stocks, Reuters and MarineTraffic reported.

Shipping data showed the more than 20 supertankers – each capable of carrying 2 million barrels of oil – were sailing to key U.S. terminals, especially in the Gulf of Mexico.

Three separate tankers, also chartered by Saudi Arabia, were currently anchored outside U.S. Gulf ports.

“This could prove to be a very expensive exercise for Saudi Arabia as whatever happens with the cargoes and the tanker owners will need to be paid demurrage (for the ships), and those costs would have been locked in when the market was higher to secure the charters,” a shipping source of Reuters said. “While this is an expensive gamble for the Saudis, shutting off production would have been proved even more costly.”

Additional costs, known as demurrage, were estimated at $250,000 a day based on rates in March when a lot of vessels were booked. Daily tanker rates soared to nearly $300,000 in the past month, and though they have retreated to $150,000 a day in the week starting on April 20th. This is quite a significant cost, for 24 supertankers that have might have no final destination as of yet.

In the preceding days, US officials have been saying that Washington is considering blocking Saudi shipments of crude oil, or putting tariffs on those shipments, adding to difficulties for the cargoes now on the water.

In response, Saudi Arabia may look to divert the cargoes to other locations, if the US really imposes a ban, according to European and Asian oil traders.

“Europe looks full, but surely if the Saudis offer it at really cheap levels, buyers would take it,” a source with an international trading firm told Reuters. “Some still have storage spaces or may agree to float it for some time.” A source at a separate oil trading firm active in Asia said they expected many of the barrels that were bound for the United States to flow to the region if exports were blocked.

A Reuters source at a separate oil trading firm active in Asia said they expected many of the barrels that were bound for the United States to flow to the region if exports were blocked.

Aramco also “offers its larger customers with refineries in multiple regions of the world optionality to take their crude purchases from Aramco into the region,” the company said in a statement to Reuters. “Changes in ship destinations are routine in the course of our business, particularly in a company of our scale,” it said.

Meanwhile, in the US oil refiners appear to be pulling back form the oil markets.

“There is more reluctance now with fresh shipments as refiners in the U.S. have no homes for the oil,” another Reuters shipping source said.

Spokespersons for Marathon Petroleum, Exxon Mobil and Phillips 66, among the biggest U.S. buyers of Saudi crude, declined to comment. Chevron did not immediately comment.

Most of the Saudi oil buyers are along the West Coast in the US, and on April 10th their storage was 65% full, it’s nearing 100% as of April 23rd. The Gulf of Mexico coast was about 55% full back on April 10th.

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16 comments

  1. Jens Holm says:

    Very nice maps. As a very smal consumer I really like low prices as a compensation for the small regression added Corona.

    So thank You. My only worry is the delay of windtirbines and solarpower cells, because half of the price for electricity by fossils make them un ëconomic as good investments.

    We have to take it a it goes, if we can. danes normaly export a lot of first class food to GB and Germany. If they decline, they wont buy or buy óur cheeper product – So we danes might eat own expensive cheep meat for some time – if we have money ourselves:)

    Maybee we should send some pork to help the Iranians after they hit Danish soldiers asked in by Bagdad with ballistics. Maybee some contraseption pills and less weapons produces might help their long times problems too. Them being killed in Syria is too slow even they are helped by the Turks.

    1. Phoron says:

      No dumb area. Do not dumb here.

      1. Jens Holm says:

        Dumbs like You is already here…

      2. d'Artagnan says:

        It appears Jens has genetic malfunction, quite prevalent in incestuous drug addicted Danes.

  2. Zionism = EVIL says:

    Maybe the dumbass arsehole MBS can drink some of the oil and send the rest to his boyfriend the Jew faggot Kushner who gave such wonderful advice to take on Russia and Iran in a oil price war. ROFLMAO. BTW, about half a billion barrels of Saudi worthless oil is floating around with no buyers.

    1. Assad must stay says:

      Inshallah this is their doom (MBS, kushner, etc)

    2. Liberal guy says:

      Hey that’s injustice these fools can hv oil swim pools also where they can swim also and make future plans for there failed nwo.

  3. jaimeintexas says:

    How will KSA then move their oil if oil tankers not available?

    1. Zionism = EVIL says:

      Exactly. The stupid fuckers are land locked and have no pipelines like Iran and Russia have access to Europe and Asia. The morons ship by tankers which are now being used as floating storage tanks, albeit very expensive one. Seriously, the Saudis are retarded. This is what happens when you have incestuous inbred morons from the diseased al-Saud family running the sand pimpdom into the ground literally.

      1. Liberal guy says:

        Hmmm that’s why these insane cowards want a oil pipeline from Qatar through Syria and assad reject it and syrian so called civil war as one more reason to happen. Smart move by the syrian president and his Iranian allies and Russians allies and president putin. So its ciao for the zios and there loyal pigs the wahhabis the biggest fools ever hahahahaha thks pal well the more these wahhabis arabs try the more they lose in everthing

  4. igybundy says:

    How much are the Saudi’s offering to buy their oil? Surely they dont expect people to pay for them.

  5. verner says:

    the oil will be sitting onboard until it can be unloaded, whenever that may be. saudi has to a gret extent used saudi flagged vessels so they’re not going to cry for demurrage or actual loss of earnings and the rest, norwegians, greeks and so on will just be quiet and prefer to seek compensation once the situation is solved.

    trump will save the shale-companies since he’s mighty proud of how the disintegrating states of A managed to turn the situation around and become the world’s number one producer after about 35 to 40 years at place number 3 or 4. and don’t think he for one second would dream of letting his wall street pals suffer, which will happen if the shale-producers all of a sudden goes belly up. some minnows will fold and its acreage picked up by exxon, chevron, shell etc and back to business.

    presently there is an oversupply of say 30mb/d and early april agreement was for a cut of 10mb/d by russia and saudi/opec, question is when the other 20mb/d will be back in play, which just might be far into the future and then even the dunny can’t do anything about the shale-business (remember that dunny was one serious player in the 90s which was saved by the jews on wall street,the other gang was the toronto jews that built canary wharf in london and almost went belly up but was saved by wall street. so dunny is in debt to those jews on wall street and will have to act accordingly!

  6. Xoli Xoli says:

    Trump and Sheiks greed have flooded their selfish oil markets.

    1. d'Artagnan says:

      Saudi Arabia is largely irrelevant to the declining west as oil is no longer a prime commodity, but a liability. Ignorant bombastic Trump and felon Kushner pushed an uneducated clown prince MBS into waging a suicidal oil price war with Russia, a superpower and the catastrophic results have proved fatal for the Saudis and the US.

      1. Xoli Xoli says:

        This people behave like blind people because of greed and ignorance. Thank you for stand up for truth and reality.

  7. cechas vodobenikov says:

    the amerikans will likely pour the oil into their rivers, lakes and lagoons—they r proficient spilling oil in Alaska, California, their gulf coast, Florida… they now spend billions $$$ on bottled water; their corporations poison their water with fracking, bottle this water and sell this unregulated poison to their witless peasants

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