Shock Report: Oil Oversupply Exaggerated: Millions of Barrels Go Missing: “Oil Market Could Tighten Substantially”

by | Mar 18, 2016 | Headline News | 70 comments

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    You may remember that just two months ago the International Energy Agency warned the oil market could “drown in oversupply” in 2016. The outlook for oil, which had tumbled 75% since 2012 and hit a low of $28 per barrel by mid January, was looking bleak with some analysts suggesting that sub-$20 oil was a real possibility.

    The official numbers were compelling – the world was awash in oil with scores of tankers brimming with black gold reportedly sitting in limbo with nowhere to go. Oil storage was at capacity. OPEC warned that oil wouldn’t return to triple digits for two decades.

    The entire North American oil sector had collapsed. Tens of thousands of jobs disappeared almost overnight. And with prices so low, many producers and exploration companies who had taken out large financing packages started missing payments. The energy debt bubble had burst.

    But what if the oversupply that was threatening to topple mid east governments and unravel the global economy was a complete fabrication?

    What if it the numbers upon which the entire narrative was predicated were nothing but fantasy?

    It turns out that this may well be the case, according to Fortune:

    The IEA was unable to account for 800,000 barrels of crude per day last year–the highest level of missing crude in 17 years.

    The missing crude could simply be a figment of statistics, showing up in the agency’s data due to flawed accounting.

    If the oversupply has been exaggerated and those barrels don’t exist, market analysts say that the oil market could tighten substantially. Crude prices have wallowed at their lowest point in more than a decade over the course of a nearly-two-year crash marked by concern about oversupply.

    Seriously, you can’t make this stuff up.

    Long story short: no one actually knows where these missing barrels are or if they even existed to begin with, suggesting that someone, somewhere Kashkaried the numbers.

    This means that millions of barrels of oil that were reportedly filling up storage depots around the world may have never actually existed in physical form, which would in turn imply that said oversupply threatening to catalyze World War III and wipe out the North American energy sector for the next several decades has been fabricated.

    Most ironic, of course, is that if the International Energy Agency’s latest official report is correct we are about to witness a massive global supply crunch, the consequence of which could be an unprecedented price swing in the opposite direction.


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      1. Sounds to me like someone STOLE THEM, like the Government!!

        • That, or perhaps this was nothing more than a paper shuffle designed to enrich the special few.

          Though, it can be argued that the ‘special few’ often have multiple objectives in mind when executing such operations…

          • Yeah a paper shuffle now trying to enrich the few now. I don’t doubt that the oil is really there. Apparently it just fell off the grid. Imagine that. Besides, there’s appears very little money to be made from the markets other than oil speculation. Retail is in the shitter. Mostly just….meh. Iran ain’t up and runnin’ just yet.

            • paper shuffle = figures lie and liars figure.

              go figure what happened

              • As if this is a novelty? As if we can’t set our watches by the fuel price increases right before people take their summer vacations???

            • Shuffling the papers…

              9 signs that 2016 looks ominously like 2008 just before the crisis

              “Once again, the financial system is in desperate condition. And the data is all there for anyone who cares to look.”

              “The financial system is now loaning money to bankrupt governments at negative interest rates.”

              “Today, US government debt exceeds $19 trillion, well in excess of 100% of GDP.

              They have to borrow money just to pay interest, and they have entire pension funds that are on the brink of bankruptcy.

              The Federal Reserve’s balance sheet has exploded to $4.5 trillion, and interest rates are barely above zero.
              The government has no means to bail anyone out, including itself. And the Fed has no capacity to print more money and expand its balance sheet without causing a major currency crisis.

              Simply put, the bubble is just as insane as in 2008, but much bigger. And the financial establishment has no ammunition to fight it.”

              ht tps://

          • I think you’re probably right, but at this point anything is possible. nothing surprises me anymore. Seems like something happens almost on a daily basis that threatens what stability is left, if you can even call it that.

          • I don’t know Cushing is either full or it’s not, all those tankers off the cpast either have crude in them or they don’t. Both are easy to tell

          • Get ready for the coming hydrogen economy!
            Fuel cell powered everything is just around the corner.
            However, a WW3 must take place first.
            The oil economy must be destroyed and burried before they turn the page.
            This is the wrong time to buy a new piston engine car…!!! It will be costly to convert it to hydrogen. That is if you are still alive in 2017/18.

            • Where are you gonna get the hydrogen from?

            • Hopeless optimism. We use oil to support all the things we do and in all our products directly and indirectly. Even if we had another energy source our economy and lifestyle is hydrocarbon based.

          • I agree, Mac.

            There was never a glut/oversupply, as the info media stated. Many people that are in the oil loop had said the “supposed” over production by OPEC, was only a ruse to bring oil cheaper and break the backs of the smaller US drillers that was starting to affect the world market on a micro scale, but still taking $$ out of the OPEC and Illuminati coffers.

            I believe it was planned for a specific time, because; all the cheaper gas was during the cold months when the demand for heating fuel was at it’s peak, which kept the oil demand flowing. Now, all of a sudden, warmer weather is here and spring/summer travel is ramping up as well as the price at the pumps.

            OPEC has supposedly cranked down some production to create the myth that supplies are dwindling, but just as they are “SUPPOSEDLY” doing so, Iran is pumping at full steam, and the rigs in the Gulf of Mexico are pumping at record levels because of new fields that are coming online from exploration and development from years earlier.

            The fix is in and it is all just one big “paper shuffle”, as you say. Oil is now back over $40 a barrel, and climbing. Gas is up on average of .40 cents a gallon, and climbing. I see $2.50 average before May 31st, about a dollar increase in just a few short months. In preparation, we traded out a 10 mpg vehicle for a 25 mpg vehicle.

            Speaking of paper shuffle; the USSAG economy continues to chug along, as the rich get richer through the stock markets.
            Dow back to last years average high levels, nasdaq inching near 5000 again, and the S&P now back over 2000.

            As i have said many times here, the see-saw will continue until “they” pull the plug for “their” planned events. Snyder is spot on, on many things; but he should never have played the “stock market crash” card, as it did him no favors. The chicken little syndrome was carried a bit too far with the concentration on the markets…especially the DOW. Those that pulled out too late, and didn’t reinvest, are now watching as the markets climb again and they are holding a bag half full.

            Hopefully they bought into the PMs that are holding stable.

            • I see 3 things this accomplishes:
              1: Takes russias economy down a few notches
              2: Cheap refilling of reserves for war
              3: Bankrupts US drilling outfits after they have the infrastructure in place so the smellite can swoop in and buy it up for pennies on the dollar and control it all.

              • One of the oldest tricks they use, drive down commodities, bankrupt the farmers, miners, drillers, etc. then buy up their property for pennies and gain control of it all. If they can’t bankrupt them they make their stooges pass laws or acts to have them evicted (sound familiar?)

                • I do custody management electronics control work on a few oil pipelines. Not too long ago you could pump in any amount you wanted. In fact the more the better for everyone involved. Today the pipelines are full and most producers have an allotment which has been getting lower and lower as the months go by. No one is buying the oil. The pipelines that are direct export are the slow ones. That oil is mostly used to make plastics, roofing products and road tar. The supply to the refineries is low but hasent caved so much because most gasoline and diesel is produced here and shipped overseas.

              • Genius, for your second point, too bad for us, obama has weakened the military so much, I think he’d order it to stand down and be the traitor he is.

            • I’m not sure how all of those in the oil storage and movement industry could synchronize their lies at the same time and “produce” this false oversupply. Words are cheap, isn’t there any evidence that this oversupply never existed or has a verbal tsunami ensued and some other group of people is trying to create an equal and opposite set of lies? What I see is one lie supplanting another lie. Somebody apparently wants to create a different mindset in oil consumers but as far as calling the oversupply a hoax, show me. Give me some proof, all I see are slippery words.

          • Creep creep creep.. then war, then spike.

            Millions go missing just means the market is as manipulated as gold.

        • Sounds to me like someone made this shit up entirely in order to keep people from panicking???

          I don’t know why else you’d make this shit up. They just totally decimated shale with this, so there had to be something worse than that at stake.

        • Sounds to me like it’s being hoarded like so many other commodities for the elites utilization when the S*** really does hit the fan!! They’ve been stocking their bunkers for a very long time.

      2. Just an though, but This could be nothing more then a made up story. To get the sheep, you know us “little people” to move in the direction that the powers that be want us to.

      3. I have noticed that gas prices have started to rise again on Long Island

      4. Keep in mind the world’s largest consumer of oil is the US military. When supply gets ‘tight’ or ‘glutty’ it is usually something to do with the military beefing up supplies in front of a future anticipated high demand: that tends to be an uptick in tempo, ie: war.

        I suspect the Pentagon has been getting strategic reserves topped up and also supply depots around the world ready for WW III.

        • Your idea seems plausible too. My thought was that the whole thing could have been a ruse to push prices down to hurt Russia and also to reduce the value of Iran’s new ability to export the stuff. This admin seems to hate those guys a lot. But the military is one of the few that seems to have the chops to manipulate things on this scale and get by with it…

          • jaxx, this adminstration, (if you can call it that), does not hate Iran. Valery Jarret’s in charge, remember?

          • The military has been sucking up oil at a record rate for the last decade. They would be hard pressed to use any more than they do today.

        • Yup
          The war machine needs the lube

        • I hope nobody missed that point you made. The US military is the worlds largest consumer of fuel. I’ve known about that for awhile now. Nearly 800 US military bases around the world. The Globalists have looted our treasury.

      5. May be it went to Government underground bunker or military base

      6. Paper oil just like paper gold to force dependency on government.just like the walmart neighborhood market forcing mom and pop businesses out then closing.

      7. They have to have an excuse for profit taking this summer. 800,000 barrels is a drop in the bucket. With Russia, Iran, Venezuela and other Arab countries cranking it out without reduction, we’re swimming in it. The proof of the pudding is the percentage of capacity filled at the oil refineries, which last time I checked was at 80% plus. Somebody worked out a little trick to justify a little breathing room for some of these floundering energy sector companies. Gotta keep that image of a thriving economy alive before the November elections, don’t cha know.

      8. It is a trap purposely set for the public.

        Think hyperinflation on oil prices.

        Think hyperinflation on also food.

        Kissinger: “Control oil and you control nations; control food and you control the people.”

        In 1973 during the Arab oil embargo, I believe President Nixon
        ordered The Strategic Oil Reserves Taped.During The Yom Kippeur War.

        Do not get fooled that low prices at the gas pump are going to last, just like the food prices that are creeping up.

        Overnight things will change…

      9. Oil is overrated and on it’s way out the door anyway- like old
        8-tracks & cassette tapes. Renewable energy is the way of the future. Wind, Solar and tidal energy is surging. They can’t skew the numbers as long as the sun is shining. Oh…but let’s not be mistaken…our government will surely find a way to make it all taxable.

      10. They will say whatever they need to say to get the price back up. Last hike it was a switch to the summer blend.

      11. Hmmmmm. Russia leaves Syria and immediatly the price of oil starts going back up by removing the”paper oil”? And for a minute I thought that the governments of the world were doing something goodfor the little guy.

        Well…….maybe 30 seconds anyway.

      12. if the plan by the Saudi puppets working for the banksters was to weaken Russia then it’s not working but it is keeping costs down for the US military that chages US tax payers a whopping $2.6bn a day to keep yo all safe when no one is attacking the mainland.

        Do you feel any safer since 9/11, are you richer since the invasion of the middle east or are you worse off.

        That cheap oil that Turkey was buying from ISIS has all but come to an end thanks to Russia so maybe that will help to push prices back up again

      13. Well, 800k barrels per day is basically just a rounding error when the world uses over 90 million barrels per day.

        • Yep, about 1.5% per day, nothing to be concerned about at all.

          If it is actually not existing, it can be replaced with just a few wells starting up.

          Tempest in a teapot.

      14. Can you say B.S.??????????????????

        Here are some options.

        It was never there to start with. They are hiding it until the prices go up. Or the worse of all. Some one has stock piled it for some type of war. W3, or maybe civil war in the US?

        Just a thought I.M.H.O.


      15. The how’s and why’s are not important, at least to me. There’s not much I can do to prevent it from happening but there are things I can do to prepare for the ramifications of it.

        One of those things is to start stacking fuel while the price was good (currently diesel is well below low-octane fuel). I bought a couple of 55 gallon steel drums but they have small leaks in the vertical seam and around the bottom.

        I bought some 2-part steel epoxy (Weld-On), do you think that will seal well and hold up against the diesel I’ll be storing?

        As for storage, how long will diesel last? I’ve heard forever but don’t believe it. I bought some Pri-D stabilizer but I’m not sure how long that will take it either.

        And how can I tell if it’s going bad?

        • I had read that gasoline usually starts to break down after 1-2 years, depending on quality. Diesel lasts a lot longer- 5+ years. Add the stabilizer and it should last another few years. If the pumps aren’t back up in 5 years, they never will so whats the point?

        • I use my stored fuel on a regular basis as the fuel here does not store well at all. Just use it every few months and save yourself the expense of stabilizers. I hope this helps.

      16. it’s baaaack !!!

        Health workers rush to contain fresh Ebola outbreak in Guinea

        h ttps://

        actually it never left,EBOLA is now endemic in several coutries
        hopefully authorities will stamp this out before it gets out of control again

        “While the epidemic has come under control, experts have warned of the risk of new flare-ups, as Ebola can linger in the eyes, central nervous system and bodily fluids of survivors.”

        • Apparently, the Ebola virus can remain active in the body for a LONG time.

          Ebola virus found in semen six months after recovery
          Man declared Ebola free “provided a semen sample which has tested POSITIVE for Ebola, 175 days after his negative blood test…”
          ht tp://

          Ebola relapses – the virus CAN HIDE in inaccessible corners of the body
          (Ebola) “virus that CAN HIDE in inaccessible corners of the body – such as the spinal fluid or eyeball.”
          ht tp://

      17. Could be they want prices to go way back up to compensate for all the money they lost when ISIS or whomever was basically giving it away for free and glutting the market.

        That’s if you even believe THAT shit.


        Maybe Saudi society (such as it is) is about to go tits up and they need more welfare money, and someone’s rapidly realizing that if they don’t get it, we got much larger problems.

      18. Have you all heard Planet 7x is upon us. They, the elite, may be pumping and hoarding as much oil as possible in DUMB and other underground rat holes the elite are running to very soon. Serious. Makes no sense at peak oil to over produce if they did. And the “missing” 12 trillion dollars sine 1982- Smells. Just putting it out there.

        • very possible, all those generators and pumps etc run on fossil fuels

      19. Like Gold and Silver I’m glad I squirelled away 100’s more gallons of diesel and Non_Ethanol gas over the past few months. I feel with these stories and the price of Fuel going up it was ALL just a rouse to put the US Shale/Fracking companies out of business. (can u say Rag Heads)

      20. Reminds me of the old song: Take the money and run.

      21. I dally in the stock market and, in the past few weeks, I have heard many traders pushing everyone to invest in oil stocks while they were low priced and a lot of investors followed their advice. I believe this disappearance of millions of barrels of oil is merely hype and smoke and mirrors to artifically raise the price of oil and the price of the oil stocks to make some big money for their large investments in oil.

      22. Nothing that raising the price at the pumps won’t fix.

      23. Hmmm.Someone is lying again. If the storage tanks are full and the tankers are full and everybody is still pumping then the glut is real and still there. If oil stays at 40.00 and above the shale wells come back online and the price will stay in that range or lower. Someone is trying to manipulate the market and make some quick cash.

      24. The price of gas goes up-
        The price of gas goes down-
        Up & Down –
        So, what’s new?

      25. The oil is either there or it isn’t.

        Whether it is or not should be reflected in prices since ready supply is what dictates them.

        So far, prices seem to indicate it is.

      26. Remember all that oil in storage we told you about?

        Remember how we told you all that oil was keeping prices down?

        Well, all that oil was not real.

        And guess what. We are going to have to raise prices!

      27. all I can say is bend over and assume the position

        • BOHICA?

      28. Nothing like ripping off the consumers in the, “free market” with the blessing of the Government looking the other way.

        • That’s exactly what the government wants you to believe. They want you to blame big business, not the government policies that have created the mess. Now you’ll scream and beg big government to save you from those pig capitalist giving government even more power to regulate and control your life. Your argument is playing right into their hands.

      29. Not worth talking about. Insider trading is legal for them. Most Companys are Bankrupt or about to be.

      30. They do exist. The oil is on paper sitting in a vault just like the gold etfs.

      31. I have a simple mind; let me connect a few dots.

        1. The price of oil dramatically drops which hurts the Russian economy
        2. Russia flexes its muscle to protect its gas line asset in Syria.
        3. Russia leaves Syria
        4. Oil price rises

        Its too coincidental.

      32. I believe I read a week or two…or three ago, that the saudis were fine with twenty-something dollar a barrel oil if that’s how it has to be, and not concerned in the least how the other exporter nations would fair. A very quick and steep increase may be just a little too much for the Soetoro Economic Recover to handle.

      33. let me see if i got this right. summer vacation is coming, spring break is here. people will be driving more so i guess a few missing gallons of gas and hocus pocus .50 cents or more rise in fuel prices. if the gas companies can throw in a rebuild or fire in one or two refineries and bang prices are right back where they want them

      34. Smokey pointed it out, but let’s grind the numbers…

        800,000 bbl/day x 365 days = 292 million barrels/year

        If we are using 90 million barrels/day, then

        292 million bbls/90 million/day = 3.24 days of production

        How much more of a non story can you get ?


      35. This oil market manipulation (paper oil) appears to me no different than what has been going on in the precious metals markets.

      36. It is a big paper shuffle and its being orchestrated by the governments of the world, especially ours, to make it look like the economies of the world are humming along when in fact its all about to collapse. If the average Joe Smoe out there saw how much less energy industry and individuals were using they’d be able to figure out it’s all a charade. Once the average Joe figures it out, they’ll hunker down and quit spending and the whole system will come to a screeching halt.

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