There is no unified system for reporting oil reserves and this can effect oil prices. Due to the record low price on oil this year, reserves have become significant, mostly sored in tankers near America and other industrial countries. These same nations report their inventories but those reserves in the tankers are out of the reports. On the other hand Russia and China refuse to share the oil reports and keep tankers filled with oil near borders and companies are not obliged to show reports for these oil storage's.
In countries such as Angola, Brazil and Nigeria reports are certainly not accurate. This global oil report has become much more complicated since developing countries continue to register growth in consumption and increase in oil reserves. Singapore is surrounded by tankers but the exact amount of what they are storing is unclear. Since July 23 tankers with a capacity of 43 million barrels stood near ports for about a mouth and the number of ships has grown to more than 15.
After OPEC stopped the managing of oil prices, oil reserves are becoming more and more important. Every oil producing countries have full production capacity. OPEC ceased to be the keeper of oil prices and increase the amount if necessary and it is unclear if the oil produced from US companies and more specifically Shell, will be able to take the role. As nations are not required to register their oil reserves in the sea, these floating piles increased by 95% since 2009.
Some analyst believe that many countries enlarge strategically their reserves and if so, the quantities of oil reserves may be used up quickly.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.