Other analysts say crude prices are going down regardless of storage issues, and there’s little anyone can do about it at this point. If that is the case, the big oil companies will have to give back some of those enormous profits they have been stockpiling for years.
What a difference a year makes when it comes to crude oil production. For the last several weeks, the U.S. has been importing and producing over 1 million barrels more crude oil than the current consumption rate. The crude is usually stored in Oklahoma, but that storage facility is at its breaking point. The supply of crude is now higher than it has been in the last 80 years stated PR Newswire.This interesting crude debacle could mean gas prices may drop in the next couple of months. The Oklahoma storage facility may be full sometime in April, and that presents some serious challenges for the Energy Department. If the U.S. runs out of crude storage space, oil prices could fall to $20 a barrel even if production is cut back.