Ithaca, NY – May 23, 2017 – Along with shale oil production, crude oil inventories are playing a powerful role in determining global oil prices. Wall Street Journal’s “OPEC’s Foil: It Can’t Drain Enough Stored Oil”, explains the difficult time that OPEC has had in trying to balance oil prices by cutting output. Investors need to understand storage that exists worldwide:
“OECD storage is only a slice of what investors are looking at. More than half of the world’s oil refining capacity is now outside of the OECD, in countries like China and India, where accurate storage data is difficult to come by.
China made significant inventory drawdowns early in the year followed by large inventory builds to recover to an oil stock level of 783 million barrels as of May 17, according to data from global storage monitoring firm Ursa Space Systems Inc., which monitors 75% of China’s storage capacity.”
Read the whole article here.
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