Q: Hi Peter,
Can we talk about this looming idea that "we" (whoever that is) are going to run out of storage capacity for oil, in about 5 months. Why is this such a big deal? And wouldn't this end up being positive because it would help place a floor on oil prices i.e., if there is no more room, then real production not just rigs would have to come down. Also, what's your view on hedge funds positioning for a further decline in the oil price? Thanks for your help.
Can we talk about this looming idea that "we" (whoever that is) are going to run out of storage capacity for oil, in about 5 months. Why is this such a big deal? And wouldn't this end up being positive because it would help place a floor on oil prices i.e., if there is no more room, then real production not just rigs would have to come down. Also, what's your view on hedge funds positioning for a further decline in the oil price? Thanks for your help.