Oil storage space running out, analysts warn

Oil storage tanks at Cushing Oklahoma

Oil storage space: With supplies of oil outstripping demand by as much as  1.5 million barrels a day, analysts quoted in The Wall Street Journal are warning that the world is running out of the space to store it. Stocks in the US are at their highest levels since the 1930s and the country’s storage tanks are up to 70%  with the key terminal in Cushing Oklahoma getting dangerously full. According to rough estimates compiled by Citigroup, Europe’s storage tanks are 90% full with South Africa, South Korea and Japan not far behind at 80% each.”Stocks are rising at an alarming rate, “says Harish Sunderes, a fund manager at Loomis, Sayles & Co. “It seems that we just do not have enough capacity.” 

Source: Interfax