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 Zohr effect
15 March 2018
Hopes are high of fresh finds in the area
Full speed ahead for Egypt's gas
15 March 2018
Eni's parallel-development method has enabled it to smash records at its mega-giant Zohr gas project. Petroleum Economist was given exclusive access to the onshore operations
Hurdles face putative Asia-Pacific LNG hubs
14 March 2018
Singapore, Shanghai and Japan all wish to become trading hubs and price-reporting agencies are trying to establish benchmarks