Oil Storage Rises With Lower Prices

The key to surviving and thriving amid the carnage in global oil markets is having a place to store the stuff.

Oil prices have dropped 60 percent since June as the U.S. pumped more shale crude and OPEC resisted calls to cut production, stoking a global supply glut. While the 28-company STOXX 600 Oil & Gas Index has fallen 4.9 percent this month, shares of Rotterdam-based Royal Vopak NV (VPK), the world’s largest independent storage tank operator, have surged 15 percent.

“We don’t know specifically about occupancy rates but we hear from companies that inquiries for tank storage are growing,” Ronald Backers, adviser for business intelligence at the Port of Rotterdam, said by phone Jan. 12. Europe’s largest port has crude oil tank storage of 85.6 million barrels.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza