The search for storage
In the fourth of a six-part series, our trader looks back at a time when oil was the best commodity one could hold
Contango benefits anyone with access to storage because the prompt price of crude is cheaper than crude bought in the future. So it works really well for a refinery that has excess storage. When managing supply and hedging around a 200,000-barrel-a-day refinery we had crude storage of close to 2m barrels. The company had rarely kept storage completely full but the contango was too large to have empty space, and so a plan was created to secure a long-term ratable supply of crude from a Middle Eastern producer. We wanted to maintain 1.8m barrels of inventory at the refinery. As soon as we were confident enough of securing the supply, we bought front-month futures contracts and sold those we ha
Also in this section
20 February 2026
The country is pushing to increase production and expand key projects despite challenges including OPEC+ discipline and the limitations of its export infrastructure
20 February 2026
Europe has transformed into a global LNG demand powerhouse over the last few years, with the fuel continuing to play a key role in safeguarding the continent’s energy security, Carsten Poppinga, chief commercial officer at Uniper, tells Petroleum Economist
20 February 2026
Sempra Infrastructure’s vice president for marketing and commercial development, Carlos de la Vega, outlines progress across the company’s US Gulf Coast and Mexico Pacific Coast LNG portfolio, including construction at Port Arthur LNG, continued strong performance at Cameron LNG and development of ECA LNG
19 February 2026
US LNG exporter Cheniere Energy has grown its business rapidly since exporting its first cargo a decade ago. But Chief Commercial Officer Anatol Feygin tells Petroleum Economist that, as in the past, the company’s future expansion plans are anchored by high levels of contracted offtake, supporting predictable returns on investment
