Traders Booking Crude Storage in South Korea

Oil

Oil traders are renting close to 15M bbls of crude storage tanks in South Korea this month to hold excess supplies on expectations of a spike in demand after China recovers from the effects of the coronavirus outbreak, reports Reuters. Crude supplies in Asia are building after Chinese refiners cut output by about 1.5M b/d over two weeks. The traders have taken on new storage leases for 3-6 months, with the current contango market structure offsetting some of the costs.