RE: oil price21 Apr 2020 23:12
So storage capacity is almost full around the world. What happens then, wells have to be shut in, there's no alternative, oil companies fail. This is happening now.
When wells are shut in, significant damage can be done to the oil field and it can be expensive and take time to get them flowing again. Many won't
So which oil wells are going to be shut in first and where? Which is the most stressed oil blend, shale oil in America? But America may have the most free storage at the moment, as well as china.
And the big question, when demand comes back in a say 3-6 months are wells going to be quick enough coming back on-line to meet demand?. Will all the oil in storage fill the lag. What happens to the price of oil then, a full reversal?