Oil Storage at Asian Hub Just Got Pricey, If You Snagged Space
- Singapore tanks were at 70-80% capacity in February: Tri-Zen
- Price for short term lease gained at least 38% since outbreak
Photographer: Munshi Ahmed/Bloomberg
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The cost of storing fuels at the Asian hub of Singapore has surged as onshore tanks rapidly swell to near capacity amid crashing demand for everything from diesel to gasoline due to the coronavirus.
For those that managed to snap up some space recently, the price of storage for around two to three months has climbed at least 38% since the outbreak, according to two traders with knowledge of the matter. No more new leases are being offered in Singapore with capacity limits set to be tested in coming weeks, prompting a surge in interest for ships to store fuels amid a rising glut.