Benefiting from downstream strength

The independent storage business is doing well, driven by high refinery utilisation, growth in long-distance trade and high demand for products. Over-expansion in new capacity is the main threat

The worldwide independent storage business has just had its third consecutive year of high demand, high tank-occupancy and – at the main hub locations – rising fees. Strong business parallels the strength of refining and marketing over the same years, reflecting the oil sector's robust fundamentals. High refinery utilisation – at the main centres there is very little spare capacity – is good for the independent storage business because high utilisation leads to increased trade. Very few refineries are balanced to the demands of their local markets when they are running at high throughputs, so surpluses and shortages develop. Traders are quick to spot the imbalances, moving products through i