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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (200837)	4/10/2020 9:15:03 AM
From: teevee	2 Recommendations Recommended By E_K_S isopatch Read Replies (1) \| Respond to of 206179

OPEC meeting was kabuki theatre. All storage is near full. With copper or other metals, you can simply pile up ingots in a warehouse or yard. With oil, storage is needed (tankers, tank farms, salt caverns). All available storage is near full. If demand is off by as much as 30mm b/d. Full storage will force shut in production. Lack of storage will drive shut ins regardless of what OPEC may or may not decide. Where will the oil go if not shut in? Dumped in the ocean, dumped on land or rivers? I don't think so. Also, refineries are cutting back on production as their refined storage is near full. Crude and refined storage is near full. Each barrel of oil produces a similar amount of gasoline, diesel, jet fuel. Where do you put it when refinery storage full?

To: elmatador who wrote (200837)	4/10/2020 10:25:55 AM
From: E_K_S	Read Replies (1) \| Respond to of 206179

I wonder what power USMCA might have (if any) on Mexico and/or US and/or Canada have in entering into some type of OPEC deal? I suspect some agreement (perhaps short term) would be in the best interests of all parties subject to the length of the pandemic. I do think USMCA (if it covers oil production/output) or more broadly trade between USMCA member vs others may/could be one of the 'New Normals' and could see prices/production be set based on the benefit to the members (USMCA). OPEC in the long run future just may not have the power to control prices like they have in the past. I believe USMCA members may see much longer term benefits especially as it relates to N. America production (and that oil/NG production specifically). EKS