Related Articles
Forward article link
Share PDF with colleagues

Mixed results for global independent storage

Business trends in independent oil storage have diverged geographically, with profits led by terminals serving the long-distance trade in refined products

Trends in the oil market recently have not been kind to the independent storage operators. Oil use in the US and Europe has been declining, so smaller volumes need to be moved and stored. Meanwhile, refined product prices have predominantly been in backwardation – futures prices lower than prompt – so there is little incentive for speculative storage. The first trend has cut the logistical call on independent storage capacity and the second has cut the trading call. But the good news is that the long-distance supply of refined products is increasing, and is seen as a structural feature of the business. The new super-refineries of Asia and other advantaged refineries – such as those on the U

Also in this section
The future is supercharged
11 August 2017
Electric vehicles are increasingly central to government policy and car manufacturers' plans alike. What does their uptake mean for the energy sector?
Uganda-Tanzanian pipe dream
10 August 2017
The Uganda-Tanzania oil pipeline route is close to becoming a reality. Kenya will have to go it alone
Maputo takes the plunge, Dar looks on
10 August 2017
Mozambique and Tanzania both have gas reserves likely to support extensive LNG exports, but only one of them is truly committed to exploiting them—at least for now