Supply threats in the Middle East have governments around the world hoarding oil, largely in secret. But it didn't get past Raymond James Director for Energy Research Marshall Adkins, who noticed the 200 million-barrel discrepancy between what was pumped and reported global oil reserves. Where did the missing oil go, and why don't prices reflect this substantial surplus? More importantly, what happens once the reality of an oversupply sets in?—A tough six months, Adkins expects. Read on to find out where you can hide when prices plummet.
The Energy Report: You've written a provocative research report titled "Hello, We'd Like to Report a Missing 200 Million Barrels of Crude." It argues that the global oil inventory should have grown by over 200 million barrels (200 MMbbl) during the first six months of 2012. Where did this oil go? And a better question is, why hasn't this surplus shown up in pricing?
Marshall Adkins: When the U.S., the European Union and the United Nations imposed sanctions against Iran, the world responded by putting oil into storage. China rapidly began filling its strategic petroleum reserves. Saudi Arabia topped off its surface reserves. Iran put oil in the floating tankers. Continue reading "The Case of the Missing 200 Million Barrels of Oil: Marshall Adkins"
