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.