"Premiums Are Going Nuts Everywhere": Plunging US Supply Sends Oil Prices Around The World Soaring

"Buyers of physical oil across the planet are experiencing an acute supply shortage and are

facing some of the highest premiums for supplies they’ve seen in months as plunging stocks at the largest US crude storage hub send shockwaves cross markets from Asia to Europe and the Middle East.
All that’s happening just as the world was already facing a tight supply situation with Saudi Arabia and Russia cutting output. In recent months, the US had helped fill a void left in the market, routinely sending more than 4 million barrels every day to sate global appetite. Between overseas shipments and strong domestic demand, stockpiles quickly declined in the US. Now there’s a question of whether those flows will continue.
“We’re running out of oil – you can see how low storage is at Cushing,” said Gary Ross, a veteran oil consultant turned hedge fund manager at Black Gold Investors LLC. “If we’re running out at Cushing, then we’re running out in Europe, because it relies on US exports. If the US exports less, then where is Europe going to get its oil from?”
“The premiums are going nuts everywhere,” Ross said. “The Saudis have tightened this market up dramatically.” Almost as if Saudi Crown Prince MBS doesn't care much for Joe Biden's sole election "strategy" of keeping gas prices low - fist bumps notwithstanding... " ZH