Oil in Middle Eastern Floating Storage Increased By 38 Million Barrels (USO BNO)

From last week to this week storage of Middle Eastern Barrels on the water increased from 12.7 MB to 50.9 MB. Many of those barrels are stranded in the Persian Gulf and not moving to other ports. For reference prewar numbers fluctuated around 7-8 MB.

This is a slow moving train wreck not a head on collision. Asian floating inventories trickled down week over week from 44.1 to 42.7 MB as some of the last ships to leave preconflict arrived in port.

My price target for oil is still $150 in April, but it may not reach that number overnight. Inventory stocks are still high in some regions, the SPR release is dampening the hits. These tankers sail at 10-15 knots and travel thousands of miles.

No matter what happens we are going to see wild swings.

Positions and disclosure: I am a retail trader and not an oil or financial professional. I hold open Calls in USO and BNO, and puts against airline and high volatility stocks.