Reuters is reporting:
Oil futures fell sharply on Wednesday after government data showed the
largest weekly increase in U.S. crude inventories since 2001 and a day
after Saudi Arabia reported record production in March. [Russia also reported record production.]
U.S. crude oil inventories surged 10.95 million barrels to a record
482.39 million in the week to April 3, the Energy Information
Administration (EIA) said in its weekly report.
A Reuters survey of analysts had yielded a forecast for a build of 3.4 million barrels.
With US, Russia, and Saudi Arabia all reporting record production, one has to ask the question: where is it all going? Storage? Actually, the better question: when is the Red Queen going to fall off the treadmill? Whatever happened to Peak Oil?
The Red Queen Effect has been in play ever since non-renewable resources have been in use, whether by humans, animals, plants, or Ebola. Few folks consider this as they use towards their own ends.
ReplyDeleteThank you. I just get a kick out of the "Red Queen" effect. Until I started blogging I had never heard of it. I thought the whole concept -- early on, using it to talk about the oil and gas industry in general, the Bakken in specific -- was a bit disingenuous. I agree with you; and with oil, it's always been about depletion. If I had any PhotoShop talents, I would love drawing a "Red Queen" cartoon. Thank you for taking time to write.
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