Crude Storage Isn't Like a Coffee Mug, Says Dan Dicker

Just because crude storage is filling up does not mean it will ultimately have nowhere to go.
Author:
Publish date:

Dan Dicker, Energy Contributor at TheStreet.com talks to Jill Malandrino of Options Action about the singular focus of oil price based upon quickly filling crude storage in Cushing. Much of the speculation of oil prices dropping into the 30's or 20's is based upon oil storage that is at historic highs. But just because crude storage is filling up does not mean it will ultimately have nowhere to go. When prices make it worthwhile, oil can be transported to thousands of other tanker centers elsewhere in the U.S. and Canada as well as kept in the ground. Still glutting U.S. markets are particularly advantageous to refiners, although Dicker is finding less value here. Instead, he suggest a few good dividend paying large integrated stocks, like Chevron (CVX).