Oil markets drowning in glut as storage dwindles
Covid-19’s impact on oil market prices has been brutal. More than three-quarters of the world’s oil storage capacity (76%) is already full, spiking the rental costs of storage facilities.
There is so much oil with so little demand, that the market is running out of space to store it. To get around this, some producers and traders are paying buyers to take the oil off their hands. This may or may not include turning to illicit oil storage facilities.
Will the chronic shortage of oil storage capacity worsen in a post lockdown world?
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