Global oil markets are changing rapidly. Markets are specifically dynamic for European players where competitive pressures are highest. In what way will tank storage markets in the ARA region be influenced? How will profitability be impacted for tank terminals operating in the petrol, middle distillates and fuel oil segments?
Read PJK International’s contribution for Tank Storage Magazine. Just fill in your name and your e-mail address below. When this article has caught your attention and you would like to acquire more information on ARA tank storage markets, read our ARA tank terminal study.
PJK International has made a detailed study of the ARA Tank Terminal Market. It focuses on the central issue of profitability for storage companies in the ARA-region.
This FREE eBook gives an outline of the study for promotional purposes. The integral study became available at the end of February 2014 and has been updated till the end July. With this study market participants are able to make more justified strategic and commercial decisions and as a result gain an advantage over competitors.
This eBook covers among others the following themes:
Negative demand factors and overinvestment in ARA tank storage markets have put storage rates under pressure in more or less all oil product segments. The baseline outlook is that demand will further weaken, keep storage – and occupancy rates and as a result profitability of the ARA tank storage market under pressure
Learn more about the global supply and demand drivers that influence ARA tank storage markets.
This article contains information about current market fundamentals and their link to oil futures forward curves. Forward curves and demand for tank storage capacity are indisputably linked.
Commodities like oil are different from other asset classes in the sense that an embedded timing option is present in storable commodities. Oil product forward curves are the thing to watch when you are interested in tank storage and inventories.
The recent slide in oil prices has turned the petroleum industry upside down. Global oil markets became oversupplied in the course of 2014 due to the steady increase of US light tight oil (LTO) output and the economic slowdown in many economic regions worldwide.
With OPEC choosing to defend market share instead of balancing markets this situation persisted. The result has been a fall in oil prices of 61% between July 2014 and mid-January 2015.
Because of oversupply generally speaking the oil price forward curve has switched from backwardation into contango, which makes access to storage infrastructure profitable for physical oil traders.
Fuel oil demand is set to drop this year, but what does this mean to terminal operators? In January 2015 new legislation will come into effect which will restrict fuel oil consumption in Emission Control Areas (ECA) for marine vessels.
This article explores the likely impact of this piece of legislation and expected future environmental legislation on fuel oil consumption, trade flows and storage markets.