Oil Tanks Are So Full That Traders May Stow It on Pipe Networks
03.30.2020 By Greta Talmaci - NEWS

March 30, 2020 [Bloomberg – Published on March 25, 2020] – The glut of U.S. oil is growing so fast that at least one pipeline owner is concerned wily traders may try to stow away crude on its network until prices improve.

 
Plains All American Pipeline LP is requiring customers to prove they have a buyer or place to offload crude they’re shipping through the company’s pipes, according to people familiar with the matter. The idea is to prevent anyone from using Plains’s network to park oil in lieu of higher prices.
 
With the key storage hub in Cushing, Oklahoma, already more than half full, concern is rising among investors and oil producers that the surfeit of American crude may overwhelm storage capacity and force companies to shut down wells. Shale explorers are dialing back drilling but it won’t have a meaningful impact on overall crude supplies any time soon.

Similar anxieties are wracking the fuel markets as the Covid-19 outbreak saps demand and foreign producers swamp global markets with oil. Colonial Pipeline Co., operator of the busiest U.S. fuels conduit, last week warned clients that any gasoline or diesel on their system that had no end-user or storage reservation would be sold off to the highest bidder.

————-

Click Here to Access Today a 4,900 Tank Terminal Database With a Pro Trial
Click on the button and register to get instant access to actionable tank storage industry data

Pakistan, China Likely to Sign MoU on Petrochemical Refinery Next Month
05.18.2024 - NEWS
May 18, 2024 [Geo News]- During Prime Minister Shehbaz Sharif’s visit to Beijing in June, the g... Read More
Stena Oil’s New Terminal in Frederikshavn Officially Opened
05.18.2024 - NEWS
May 18, 2024 [Stena Oil]- On Tuesday, May 14th, Stena Oil’s new terminal in Frederikshavn was i... Read More
Axalta to Acquire the CoverFlexx Group, a Leading Aftermarket Coatings Business Focused on Economy Customers in North America
05.17.2024 - NEWS
May 17, 2024 [Axalta]- Axalta Coating Systems (NYSE: AXTA), a leading global coatings company, to... Read More
Airport Operator Groupe ADP Invests $20 Million in Sustainable Aviation Fuel Provider LanzaJet
05.17.2024 - NEWS
May 17, 2024 [ESG Today]- Sustainable aviation fuel (SAF) technology and production company Lanza... Read More