This is exactly what happens when there is a transport interruption. New routes are found and that blockage is relieved. The doom and gloom crew running around saying that 20% of the world supply is lost are just falling prey to the irrational panic of headlines written by those who do not understand the market. I don’t try to perform surgery on myself, family or friends not because I am not intelligent but because I do not have the knowledge to do so safely.
An interesting case in point is production in the Western US. If you are a producer there you have historically incurred a $10/barrel deduct to your sales price due to a lack of export capacity. Did that stop production or skew the market inordinately? No it did not. When the Bakken came on line there was a need for A LOT more capacity and a way was found. Heavy oil in Canada that needs to get to the US Gulf Coast? No pipeline? Fine, we will send it on rail. Where there is a will there is a way.
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Any predictions for monday?
This is exactly what happens when there is a transport interruption. New routes are found and that blockage is relieved. The doom and gloom crew running around saying that 20% of the world supply is lost are just falling prey to the irrational panic of headlines written by those who do not understand the market. I don’t try to perform surgery on myself, family or friends not because I am not intelligent but because I do not have the knowledge to do so safely.
An interesting case in point is production in the Western US. If you are a producer there you have historically incurred a $10/barrel deduct to your sales price due to a lack of export capacity. Did that stop production or skew the market inordinately? No it did not. When the Bakken came on line there was a need for A LOT more capacity and a way was found. Heavy oil in Canada that needs to get to the US Gulf Coast? No pipeline? Fine, we will send it on rail. Where there is a will there is a way.