CHINA is almost out of space to hold the oil that domestic traders bought at bargain-basement prices earlier this year when the Covid-19 pandemic crushed global crude demand.
As of Wednesday, China had used up 69% of its crude oil storage capacity with the 33.4 million tons it had stockpiled, up by 24% from the previous year, according to data from energy information provider Oilchem China. That’s only 1 percentage point away from the 70% threshold that experts view as the country’s capacity limit.
The dwindling storage space is a result of the enormous amount of oil purchased by bargain-loving domestic buyers in March and April, said an oil analyst. The shipments, most of which arrived at Chinese ports over the past two months, has gradually topped up storage tanks.
0 Comments