To put these storage issues into context, Goldman estimates $1 billion of gold would fit into a bedroom closet. Crude oil of the same value would require 17 supertanker ships that can hold about 2 million barrels of oil each.
OPEC continues to pump oil at full throttle as it seeks to avoid losing further market share to higher cost producers in the U.S. and elsewhere.
Many figured U.S. shale drillers would scale back much faster as prices fell.
The latest EIA figures show that the U.S. pumped 9.32 million barrels per day in November. That's actually up 1% from the year before and not too far below (4%) the April 2015 peak.
So...aramco's strategy did not work. Oil companies could make a killing in the next few years. We will never have a problem storing gold. Opec is desperate.
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