Oil storage buckles as virus saps demand

France 24 | Mar 27, 2020 at 3:26 AM
  • Global oil storage capacity is under intense pressure because of booming output from Saudi Arabia and the United States while the coronavirus outbreak slams the world economy and crude demand.
  • Michael Tran, energy strategist at RBC Capital Markets, predicts the global surplus could now reach 10.6 million barrels of oil per day (bpd) in the second quarter of the year.
  • SEB analyst Bjarne Schieldrop painted a similarly gloomy picture of the outlook for oil storage, as crude prices languish close to recent lows with no sustained recovery yet in sight.