Global Oil Reserve Build-Up 

Nations are Hoarding Crude and No One is Talking About It

There are 80 tanker ships steaming towards China right now.

Each vessel holds about 2 million barrels of oil.  As much as 41 million barrels will be used to top up China's strategic reserves.  

That would put the Asian nation at 100% Strategic Reserve capacity... for now.  Soon, however, they will be bringing on new facilities to hold millions more barrel equivalents.  And apparently at these ridiculous prices, the Chinese figure it's a great time to hoard crude oil.

One thing that NO ONE has been talking about is the potential of a "strategic reserve" race.  On the heels of BP's recent report that the world has 53 years of oil left (at current consumption rates), and the suddenly low prices, it makes sense for forward-thinking nations to expand their holding capacity, and fill it while the price is right.

USA has the world's largest reserve (of 727 million barrels), which is filled right now with 610 million.  It sounds like a lot, but that would only satisfy the nation's thirst for 30.5 days (at our current consumption rate of 20 million barrels per day).  Of course, that would only be if every other source was shut off, but I'm trying to make a point.  

India committed to quadrupling their strategic capacity to 132 million barrels by 2020.  Japan has 583 million barrels worth.  Russia will be hoarding 78 million, and Pakistan is just joining the party now, and the Philippines are looking to build from zero to 30 million.

We are seeing the same thing across the globe, from Iran to the UK to Israel, and many others.  Every country has suddenly (and correctly) realized that oil needs to be hoarded.  

The funny thing is that none of the nations want to bring attention to the fact that they are stockpiling.  The more who know you are going to the box of donuts, the less likely the donut you want will be there by the time you arrive.

And when should they stockpile oil?  When prices are low.  Like now.

Stockpiling oil is the new "Central Bank gold purchases," only unlike gold, oil can be used when it is needed.  It can be used to keep your nation functioning, and it can be used to fuel your military to wage war to protect your reserves.
We may be about to see a subtle, quiet build in strategic reserves of most nations worldwide.  No one will talk about it, and in fact no one will notice either... except Peter Leeds Express readers!

Everyone will tell you oil prices will go back up, but they will be citing the wrong reasons for the climb.  And they will never think about or mention that the real demand is coming from nations who are grabbing more that they use!  

When someone says "such and such country uses so many barrels of oil per day," they don't look beyond consumption.  The such and such nation actually uses that many barrels per day, PLUS how ever many they take off the market forever to squirrel away in their freshly-made facilities.

You are going to see  clandestine competition between dozens of nations, and that will push demand suddenly higher.