Storage Sells for 10 Cents a Month at U.S. Oil Import Hub
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Oil cavern space at the Louisiana Offshore Oil Port sold for 10 cents a barrel a month at an auction on Tuesday, offering a glimpse into the value of storage as domestic crude supplies swell to a record.
The sale of more than 11 million barrels of room in a cavern at LOOP LLC’s Clovelly hub in Louisiana was part of CME Group Inc.’s plan to offer the first physically delivered futures contract for oil storage. CME, the largest commodity-trading platform, listed a contract for trading this week based on the space at LOOP.