Oil’s Nightmare Scenario of Exhausted Storage Starts to Fade
- Global inventory builds are slowing, China’s falling: Kayrros
- Oil market now on path towards rebalancing: Goldman Sachs
Oil storage tanks in Cushing, Oklahoma.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
While the global oil market remains in a dire situation, it’s starting to look like the nightmare scenario envisioned for the past month might just be averted.
The industry feared a flood of unwanted crude would overwhelm the world’s storage tanks as fuel demand was shattered by the coronavirus. Once that “storage wall” was hit, producers would be forced into a chaotic wave of potentially damaging shut-ins at oil wells.