Extract: "In Asia, traders have stored excess gasoline on tankers as onshore storage facilities in Singapore and Malaysia are filled to the rims. Analysts say crude prices could soon fall again as an emerging gasoline glut potentially adds to a global overhang in crude output that sees more than 1 million barrels of oil produced in excess of demand everyday."
Former Shell President, John Hofmeister said that it's a good thing that oil prices have fallen. "It’s a good thing we have a lot of oil in storage because it provides some security on the supply side. And I worry about the day that our storage starts to drop because then how do we protect ourselves from all the threats out there to what is otherwise a market situation that’s seeking equilibrium?"
Mr. Hofmeister also said that oil should be normalizing back to USD80 per barrel by this year's end. In the meantime, my wife's friend's British husband has lost his job in the offshore oil exploration company. Times are tough when oil prices are low: Malaysia relies on oil for a major part of its GDP.
In another report, it was stated, "Low oil prices have spurred some demand. People are buying larger vehicles and driving more." Yeah, that's it. Drive around more. :-)
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