U.S. crude storage facilities are filling rapidly, albeit from a low starting level, and tank space will become a problem if the global oil market remains heavily oversupplied in June and beyond.
FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford
But a more severe constraint is likely to come from the refined fuels system, where storage capacity is lower and logistics constraints are tougher. Net stocks of crude held at refineries and tank farms amounted to 375 million barrels at the end of last week, implying storage facilities were about 57% full .
However, crude inventories have been rising at an average of 16 million barrels per week over the last three weeks. If tank farms continue to fill at this rate, spare capacity will fall back to its recent lows by the end of May.U.S. petroleum markets, refining and storage are organised regionally rather than nationally, with limited transfer capacity and flexibility between regions.
In the Midwest refining region storage utilisation is at 60%, up from 48% four weeks earlier, but still well below the recent peak of 80%. Operational requirements suggest the tank system could become effectively full well before working capacity reached 100% .
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
PGA Tour to Return in June with No Fans at First 4 EventsThe PGA Tour will resume on June 11 with the Charles Schwab Challenge in Fort Worth, Texas
Read more »
Facebook Cancels Big Events Through June 2021Facebook is canceling gatherings of more than 50 people through June 2021. It's also requiring most employees to work from home through May, with the option to continue doing so through the summer.
Read more »
Facebook To Cancel Planned Company Events With Over 50 Attendees Until June 2021Facebook CEO Mark Zuckerberg announced that his company is canceling all planned physical events with 50 or more attendees until June 2021 by AngelAuYeung
Read more »
Facebook Cancels All ‘Large Physical Events’ Through June 2021Facebook is slowing down its plans to have employees return to the office amid the COVID-19 crisis — and it has nixed all in-person events it had planned with 50 or more attendees through Jun…
Read more »
A ‘Tiger King’ Comic Book Is Coming in JuneThe popular Netflix docu-series “Tiger King” will be the subject of a new comic book coming in June, according to TidalWave Productions. TidalWave announced on Tuesday it will add the Netflix pheno…
Read more »
Agencies Confirm Virtual Cannes Market Set for JuneCAA Media Finance, Endeavor Content, ICM Partners and UTA have confirmed their virtual market in Cannes will run from June 22 to 28. “Conceived as a contingency plan should the market for fin…
Read more »