United States crude oil storage capacity is going to be full very soon. All the major countries are facing the same problem. Due to the massive fall in oil prices, all countries are storing crude oil for the future.
As per analysts, if crude oil demand won’t increase till mid of the year. It will be an excellent problem for oil oil-producing countries. The oil will be oversupplied, and there will be no place to store the fuel.
With lockdown throughout the world, crude oil demand reduced sharply. Lack of storage capacity will create a further problem with depressed oil prices. Due to the storage problem, countries will be forced to sell on even fewer costs.
The United States Crude Oil capacity can still sustain for a few more weeks. In case, if the crude oil supply is not controlled as per the demand. It will be difficult for OPEC, OPEC+, United States, and Canadian oil producers to store it.
According to the Energy Information Administration (EIA), total working storage capacity for oil at tank farms and refineries amounts to around 650 million barrels till September 2019. Till the end of the last week, 57 percent of the storage capacity was full.
Cash prices and Futures contracts for crude oil and fuels are trading at huge discounts. In case crude oil remain oversupplied, crude oil prices might still slash.
Further, United States Crude Oil prices are witnessing an all-time low. Let us see what more is to come.