Storage fundamentals turn
A shift in most oil markets from contango to backwardation is changing the outlook for the global storage business
World oil inventories are falling, and the two-year bonanza that handsomely rewarded oil-storage owners may well have run its course. After building through 2014 and 2016, commercial oil inventories in rich countries ended 2016 unchanged from a year earlier, and have since begun to draw, according to the International Energy Agency (IEA). The agency estimates that the second quarter saw a commercial year-on-year stock withdrawal of 9m barrels, compared with average increases of 45m barrels over the previous five years. This left stocks only 219m barrels over their five-year average, compared with over 330m barrels a year earlier. In its most recent market report, from September, the IEA calc
Also in this section
3 May 2024
Upcoming elections are likely to deliver a win for the party of president Andres Lopez Obrador, but analysts differ over to what degree his successor will stick to his energy policies
2 May 2024
Faster-than-expected economic growth fails to mask macro imbalances and shifting structural oil product trends
1 May 2024
Energean CEO Mathios Rigas looks to results of critical Anchois appraisal well
30 April 2024
While its regional neighbours reap the rewards of oil and gas success, Iraq’s hydrocarbons sector is lagging behind