The oil issue ... - page 19
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Once again, supply and demand of oil in barrels is always equal. You cannot produce 1 mn bbl and sell just 1 bbl. The oil is transported and sold ALL at once.
what about vaults?
The americans have storage facilities.
is it not possible to produce in storage as well?
most likely the number of barrels that the economy needs and the number of barrels that are produced.
And then there are supply contracts (from producer to consumer) where the price is fixed.
You can't take tankers first to the exchange and then from there to the consumer.
In order to pump oil into storage, a country must first buy that oil.
He was referring to global oil consumption by year in barrels, but I wondered if he would guess.
In order to pump oil into storage, a country must first buy that oil.
He was referring to global oil consumption by year in barrels, but I was wondering if he could guess.
Heh, so the americans produced shale oil, but since there was an embargo on exports they had to buy it themselves and put it in storage?
What am I missing?
Why would H buy from themselves?
hehehe, so the Americans produced shale oil, but as there was an embargo on exports, they bought it themselves and put it into storage?
I don't get it?
Why would H buy from themselves?
The US is the biggest oil consumer in the world. They used to consume all their oil and import it. And now US companies are allowed to export - in other markets the price of oil is higher than in the US
again it is not clear.
the biggest consumer, so much so that imports are needed. i.e. there is a shortage
why export when there is a shortage?
If we do not have enough at home, we may go abroad, but this should only increase the price on the local market.
I do not see the logic. Raise the price on the domestic market and bring it down abroad?
again it is not clear.
the biggest consumer, so much so that imports are needed. i.e. there is a shortage
why export when there is a shortage?
If we do not have enough at home, we may go abroad, but this should only increase the price on the local market.
I do not see the logic. raise the price on the domestic market and bring it down abroad?
The US imports cheap Saudi oil and produces expensive shale oil. And in Europe, the price of oil is higher than in the US. Companies that produce shale oil in the US find it more profitable to sell it to Europe than to the US domestic market.
From an optimization point of view this is retarded.
ZS: no wonder the world economy is in a tailspin
from the point of view of optimisation, this is retarded.
ZS: no wonder the world economy is in a tailspin
It is the market. It is more optimal to sell US oil with a high cost in a market with a high price than in a market with a low price.
It is optimal to sell Saudi oil in Europe, not shale oil.
At least based on the cost of supply.
Although Europe is where they are told to buy it, there is no other way to explain this idiocy.
Or does Europe, based on European values, not want to take oil from the Saudis?
It looks like my neighbour is bathing brooms for 50 pence a piece, but I buy them in another village from a comrade for 55 pence a piece.
Isn't that retarded?