Oil that “nobody wants” has become a problem for OPEC and floats in the oceans

As in all sectors of the world economy, oil is no stranger to the crisis caused by the spread of coronavirus. The crude oil market is in an unprecedented depression due to falling demand, and OPEC can no longer find a way to save this produced oil. Or yes: store them on boats at the significant cost that this implies.

According to Bloomberg, oil traders were forced to use their fleets as temporary gathering centers for millions of barrels of oil. Of course, these shipping companies are profitable, as they increased their prices for this type of oil storage by seven. In numbers: the ship pays about 400 thousand dollars a day for the storage of so-called black gold. Previously, the cost was about 18 thousand US dollars.

The cost of a barrel of oil is much lower than the market will pay for the same crude oil in six more. Thus, countries with potential can buy today to save. The reality is that countries are not entirely focused on fuel profits.

US President Donald Trump expressed surprise at this situation, which he called unpublished. Never before had there been so much oil in the oceans. There are approximately 250 million barrels of crude and refined oil in the ocean.