Pakistan! Stock Pile Strategic Petroleum Reserve Now as Oil Prices Historically Low!!!

[PakAlp]

what's petroleum?

No idea says the Pakistani petroleum minister.

 

[American Pakistani]

Brent Crude $33.41
WTI $25.97.

Hope strategic planners are awake and replenishing and adding to SPR.

It will only shoot up once Russia KSA deal is signed and coronavirus is over. I hope Pakistani officials are awake.

 

[nahtanbob]

oil prices are already down..advance payment unlike the deferred payments that Pakistan does for something would be appreciated by Saudis..

if the saudis accept it who am I to argue. except that storage costs money

 

[-blitzkrieg-]

if the saudis accept it who am I to argue. except that storage costs money

did you read my first post?
what storage cost for something that hasnt even been pulled out of the ground yet?

 

[Mentee]

if the saudis accept it who am I to argue. except that storage costs money

Why are you bothered about the Pakistani fiscal condition Mr bob&nathan?

 

[Baz]

pseudo intellectuals on PDF. I just love it. One of the reasons pakistan is a developing country and will remain like that for another 100 years. time wasting morons

 

[nahtanbob]

Why are you bothered about the Pakistani fiscal condition Mr bob&nathan?

It is not pakistani finances that is the issue here. It is cost of storage by foreign entities. This is not a single Rolls Royce car we are talking about. We are talking about millions of barrels of toxic, combustible crude.

It is amazing people just blow it off as though as it is not an issue

did you read my first post?
what storage cost for something that hasnt even been pulled out of the ground yet?

I do not know of any petroleum supplier who has accepted terms like that. It is not like Saudis are desperate for cash. you might have better luck with other petroleum exporters.

What is stopping someone from screwing you by taking the money and not delivering the petroleum.

 

[Cookie Monster]

Pakistan doesng have storage capacity that much.

May be ask china in lower price for storage?

It could be beneficial to build large storage capacity. In times like these Pak can buy and store large amounts...it would have two benefits and one drawback I can think of...

Pros
1) First is the obvious war time reserve...giving Pak the ability to be able fight long dragged out wars even in cases of blockade.
2) Since Pak is a net importer of petroleum products...as soon as oil prices go high Pak's economy takes a hit with that import bill. If sufficient storage is built...Pak could buy large quantities at cheaper prices(like rn) and then when the prices are high...could release some of that for domestic use instead of purchasing at high prices.

Cons
1) Cost...to build such large storage capacity...and to store it(practically lots of money just sitting there...which may not be easy for Pak to do at this moment).

 

[Mentee]

We are talking about millions of

Who's this we here? Better leave it to us Pakistanis mr bob&nathan

 

[American Pakistani]

Who's this we here? Better leave it to us Pakistanis mr bob&nathan

He is Bharti false flag. To be specific NRI.

 

[Surya 1]

Strategic reserve needs to be kept irrespective of price of the petroleum and crude oil in the international market. so far as static resource is concern, you don't have any choice. you have to maintain it in any case weather oil prices $500 or $20.

 

[KhanBaba2]

If Pakistan had money, wouldn't Saudi or UAE ask them to return their loans first before building cheap oil reserves.

 

[I S I]

This thread is epitome of stupidness.

If Pakistan had money, wouldn't Saudi or UAE ask them to return their loans first before building cheap oil reserves.

If India was a suppa pawwa, wouldn't India not retort to begging China for PPEs?

 

[Shabi1]

Brent Crude $33.41
WTI $25.97.

Hope strategic planners are awake and replenishing and adding to SPR.

Pakistan's current oil storage capacity is 70-80 days and minimum level is 20 days. The target is keep enough for at least 2 months consumption to be ready for a war like situation.

Because of the lock down situation consumption across Pakistan have gone down so the reserve should be piling up. We had a oil crisis in 2015 after which they implemented a long term plan and all oil companies are bound by law to keep a surplus reserve. Side effect of this is local prices don't change immediately once international prices change there is a cycle time.
https://fp.brecorder.com/2019/01/20190106437614/


When oil is cheap governments dont store it they use a method called hedging which is future buying of commodities. So governments all over the world would be future buying supplies. Unfortunately because of the COVID-19 pandemic it makes better sense to spend extra cash on medical infrastructure and supplies rather than worrying about oil prices.

 

[KhanBaba2]

This thread is epitome of stupidness.


If India was a suppa pawwa, wouldn't India not retort to begging China for PPEs?

Can you show me any post where I said India was a suppa pawwa.