Just consider this: Saudi Arabia has more than double the tank space Russia has. Furthermore, they use some of the oil in those tanks to flood the market with oil now freeing up capacity. When the oil storage sites of the developed world are full there is nowhere else to go for any unnecessary oil tanker. production facilities will need to shut in. prices will go negative. The only country able to massage its production for a little while longer is Saudi Arabia. What’s the risk and cost profile of a shut-in? Here is what Russians risk.
From Russia’s northeastern coast of Sakhalin to the Permian basin in the U.S., oil is going cheap as sellers slash prices in a desperate attempt to attract buyers.