Sheila Tobbin, Bloomberg, has an interesting article on oil storage, here…
“For the first time since before the pandemic, empty tanks are being offered for lease at Cushing, Oklahoma, the delivery point for West Texas Intermediate oil futures. At least 1.4 million barrels of storage is up for rental starting in July, for roughly 12 cents per barrel a month, said Steven Barsamian, chief operating officer at storage brokerage Tank Tiger. That’s a stark contrast to at least 60 cents charged when there was little space left about a year ago.”
Me: Who would pay $.12 for the right to store barrels at Cushing when the flat put settled at 1 to 4 cents for the rest of the year? Certainly not a spec… would a refiner pay this for a guarantee of space for contingency stocks? I wouldn’t think so… Still, the article doesn’t say $.12 is trading… And only 60 cents when the market was in deep contango… inquiry light is on…
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