Related Articles
Report
Forward article link
Share PDF with colleagues

Tanks, gluts and contangos

A rush on storage capacity to deal with oil’s excess is buoying storage rates, from Rotterdam to Cushing and beyond

Oversupply of crude and contango in the forward curve have offered handsome rewards to anyone with capacity to stash oil. It’s been a bonanza period for storage owners. Stocks have built and built. Total commercial crude inventories in rich nations surged again in January, rising by more than 20m barrels to 3.034bn, according to the International Energy Agency. It left levels at 338m barrels, or about 10%, above their normal range for that time of year and almost 270m barrels higher than during the same period of 2015. It means more than 0.7m barrels a day poured straight into OECD tank farms over the 12 months. Investors in the biggest storage firms have reaped the rewards. Most storage f

Also in this section
Qatar hits the gas
8 December 2017
Despite, or perhaps because of, the economic blockade, Qatar plans to expand LNG production by 30%
Cove Point boosts US LNG exports
7 December 2017
A second facility will start supplying the fuel to international markets as American liquefied gas shipments gather pace
Latin America's LNG slowdown
7 December 2017
A few years ago, gas exporters thought the Southern Cone would become a huge new market. Not likely