Oil Traders Empty Key Crude Storage Hub

21 Sep 2017   South Africa

Companies said to be selling crude from Saldanha Bay in Africa Brent crude time-structure strengthens, encouraging sales Oil traders are emptying one of the world’s largest crude storage facilities, located near the southernmost tip of Africa, as the physical market tightens amid booming demand and OPEC production cuts. Total SA , Vitol Group and Mercuria Energy Group Ltd. are selling crude they hoarded in Saldanha Bay, South Africa, during the 2015-2016 glut when the market effectively paid traders to store oil, according to people familiar with the matter, who asked not to be named discussing private operations. Crude demand is now seasonally outstripping supply, tightening the physical market for some crude varieties to levels not seen in the last two years and encouraging traders to sell their stored oil. Learn More “The market is selling inventories from everywhere,” Mercuria Chief Executive Officer Marco Dunand said in an interview in […]

Comments are closed.