Saudi Arabia sends a fleet of oil-filled tankers to the Gulf Coast of the United States – seven times more than the region received from the Saudis in a typical month last year – which threatens to worsen the glut of supply from the United States, WSJ reports.
The fear is that Saudi crude will fill rapidly shrinking oil storage, drive down already low prices and increase pressure on drillers from Texas to North Dakota to shut down their wells.
Oil tankers were loaded as Saudi Arabia pursued a strategy of increasing production to lower prices and increase its share of key markets, but the 20 oil tankers holding a total of 40 million barrels of crude are still headed to the ports of Louisiana and Texas for a planned arrival via the end of May.
“This is the Pearl Harbor for American energy producers. We know the ships are coming, and yet nobody does anything about it, “said the head of an oil company in West Texas. “Each barrel they bring on these ships backs up a barrel of oil produced here in the Permian Basin. “
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