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 fac
Also in this section
24 December 2025
As activity in the US Gulf has stagnated at a lower level, the government is taking steps to encourage fresh exploration and bolster field development work
23 December 2025
The new government has brought stability and security to the country, with the door now open to international investment
23 December 2025
A third wave of LNG supply is coming, and with it a likely oversupply of the fuel by 2028
22 December 2025
Weakening climate resolve in the developed world and rapidly growing demand in developing countries means peak oil is still a long way away
