Events over the weekend and today’s market movements destroyed the immediate pertinence of a Great Loan Refinancing Post … it will be even more timely after the dust settles on the current events…
More important now in our minds, knowledge of what is going on…
You will likely run into multiple stories today that may not tell the complete picture due to the 140 character world we all want to live in, so we wanted to clear the air and arm you with straight forward information.
Saudi Russian Tiff Leads to Spigot Opening
Over the weekend, last Saturday afternoon after an OPEC (Organization of Petroleum Export Countries) meeting where Russia stepped away from the meeting and the organizations policies …. Saudi officials announce a Shock and Awe spigot turn on and directly attacked certain Russian markets with even lower initial oil price sales… Here is a great Bloomberg Article that you should be able to read even without a subscription (3 free reads a month) …
Key Takeaways:
- Overzealous Egos know no barriers (Not kidding)
- Lower Oil Prices will seep into your life and pocket book in the form of savings
- This has nothing to do with the Corona Virus
- Markets will be jittery because of the prior point fear
Corona Virus Update
Donald the Brain located the best comprehensive dashboard site (may need patience as many are sharing this wonderful site, putting pressure on the page) I have seen, this is from Johns Hopkins University …. feel free to move the center globe around to your location and see just exactly how many cases are near… (likely not as many as you think)
Here is a fantastic chart from the dashboard that shows a high level picture of the Virus outbreaks, but also the recovered…
- Looks like China has a handle on this already…(Top line)
- New location Ex China virus confirmations may already be topping (Bottom line)
- Recoveries are accelerating, exactly what you want to see (Middle line)
I know some of the headlines are frightening and the market movements are fast today triggered by some big Ego’s…go figure!
Hopefully this clarity will help you, should you run into something that may lead you down a different path!
Unknowns eventually become knows, and clarity is found!
Have a Great “Now You Know” Day!
John A. Kvale CFA, CFP
SPR – Strategic Petroleum Reserve … Neat Facts … About to get filled!
On Friday it was announced that the US Government would take this opportunity to buy oil on the open market and fill the SPR (Strategic Petroleum Reserve) …
With our venue here being Informational and Educational, we set off the find more about the SPR.
Strategic Petroleum Reserves (SPR)
For those as interested (nerdie) as us, here is where the bulk of our information came from.
How Much is in the SPR Now?
How much can it hold?
Current authorized storage capacity – 713.5 million barrels… so almost 100 million barrels to be added…
Where are the locations (Big Underground Caverns)?
Crude Oil Storage by Site (as of January 31, 2020)
Why do we have a SPR?
Established in the aftermath of the 1973-74 oil embargo, the SPR was established to counter a disruption in commercial oil supplies which could threaten the U.S. economy. It is also the critical component for the United States to meet its International Energy Agency obligation to maintain emergency oil stocks.
How do you get Oil Out of the SPR? (Neat Fact!)
The fact that oil floats on water is the underlying mechanism used to move oil in and out of the SPR caverns. To withdraw crude oil, fresh water is pumped into the bottom of a cavern. The water displaces the crude oil to the surface. After the oil is removed from the SPR caverns, pipelines send it to various terminals and refineries around the nation.
There you have it, a neat overview …. for those interested, this is just the tip of the SPR Iceberg, as there is a ton of really neat and more thorough information on the link at the beginning of this post and again here…
Have a Great “SPR Informed” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Education, Investing/Financial Planning, Market Comments
Tagged Oil, SPR, Strategic Petroleum Reserve