The vast majority of the oil released from the US strategic petroelum reserve goes into off-shore storage vessels, or perhaps will be sent to Europe, making the US an exporter of light oil. Who woulda thought? About 80 percent will be moved to off-shore vessels. So, now, instead of the US government storing it, private companies are storing it. Something tells me they are not storing it for altruistic purposes. Average price paid: $107/bbl. This is absolutely crazy.
For all those who thought Barclays was an inappropriate bidder, they immediately put their oil into the pipeline. You could have done the same.
It looks like refiners were happy to get the oil (something tells me they did not pay a premium).
And it looks like everyone who bid, got their bid. Interesting.
Here are some highlights of the article:
Fifteen energy trading companies received contracts for crude oil from
U.S. emergency stockpiles, the Department of Energy said on Monday.
The bids total 30.64 million barrels of oil, with the average bid at
$107.20 per barrel.
About 80 percent of the offers for a drawdown of the
Strategic Petroleum Reserve crude were based on moving the oil by vessel.
Valero Energy Corp 6.90 mln 105.62-109.76 Pipeline: 3.85
Vessel: 3.05
Vitol Inc 4.00 mln 108.05 Vessel
Shell Trading USA 3.65 mln 105.70-108.88 Vessel: 3.0
Pipeline: 500,000
Barge: 150,000
ConocoPhillips 2.10 mln 106.29-107.88 Vessel
Plains Marketing 2.08 mln 106.78-107.78 Vessel
Hess Corp 2.00 mln 105.01-107.54 Vessel
Marathon 2.00 mln 105.80-107.80 Vessel
ExxonMobil Corp 1.51 mln 107.34-108.94 Pipeline: 930,000
Vessel: 580,000
JPMorgan 1.50 mln 105.33 Vessel
Sunoco 1.40 mln 106.78 Vessel
Tesoro 1.20 mln 107.08 Vessel
Trafigura 1.10 mln 105.20-107.20 Vessel
Murphy Oil 500,000 106.73 Vessel
BP PLC 500,000 105.04 Vessel
Barclays 200,000 104.98 Pipeline
