Daily Mail: Dozens of oil tankers float off the coast of Southern California as global lockdown sees demand for crude plummet
* Demand for oil has dropped due to stay-at-home orders around the world
* Pumps are still extracting from the ground and the oil has to go into storage
* Video released by U.S. Coast Guard shows a flotilla of oil tankers anchored off the ports of Los Angeles and Long Beach
* The Coast Guard has increased its presence around almost 30 ships that are acting mostly as floating storage tanks for oil
* Crude oil is not being used as businesses remain closed and restrictions on travel remain
More than 25 oil tankers are currently floating off the Southern California coastline as the demand for oil plummets.
The U.S. Coast Guard filmed video that shows 27 tankers anchored in waters just off the coast by the Port of Los Angeles and Long Beach as of Thursday afternoon.
Stay-at-home orders across the country have led to a dramatic reduction in the demand for crude oil and now the tankers have no place to deliver the product and instead have become floating storage tanks.
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WNU Editor: That is quite a sight to see. And it is worldwide .... Oil market faces storage crisis in a world awash with crude (The Guardian).
2 comments:
A perfect storm of conditions have hit the global Oil trade; something not easily fixed even if we open up
I think the effect will be temporary.
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