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BC-Oil’s-Rebound-Is-Draining-Storage-Tanks-Across-the-Americas , Sheela Tobben (Bloomberg) — Oil storage locations across the Americas are emptying as the remarkable rally in crude prices undermines the need to buy and stockpile barrels. Tank owners were one of the few benefactors from last year’s collapse that spurred traders to buy crude cheap, store it, and then sell into a rally. Now that the market and shifted into backwardation, where oil for prompt delivery is priced higher than later-dated contracts, it’s making storage unprofitable. Gulf Coast terminal operators are offering to lease tanks at less than half the rate at the height of the storage boom in 2020. The rapid draining of the tanks underscores the remarkable turnaround in oil prices less than a year after West Texas Intermediate futures settled below zero for the first time. The rebound can be attributed to aggressive supply cuts from OPEC and its partners, falling output in the U.S. and resilient demand in Asia. This year, about 1.9 million barrels of crude storage become available at St. James and Gibson in Louisiana and Beaumont in Texas, said Steven Barsamian, chief operating officer at The Tank Tiger, an independent storage brokerage. “This is the most amount of storage […]
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