It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
If there is not much demand for heavy crude, why isn't the discount greater?
Why has Iran been storing oil in tankers instead of the ground by simply not pumping it?
Why do analysts doubt Iran will cut back if Iran has no above ground place to store oil?
Why the mad rush to fill the reserves when they are 97% full?
...it's very simple really. The tankers are the Iranian's insurance policy against a strike. Their thinking goes like this: if you try anything stupid we would blow up those tankers and turn the straits of Hormuz into a raging inferno and we'll see how you like that. In a way your question contains the answer - Why has Iran been storing oil in tankers (with carrying costs) instead of the ground (no carrying costs). They may appear dumb, but I don't think they are that dumb.
Originally posted by 44soulslayer
Why would he be happy and eager to pay $127/ barrel for the oil, when there is a significant store of oil remaining in the reserve?