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Oil storage nears full capacity in April in developed markets: PIRA
[NEW YORK] Oil storage facilities in major OECD markets will likely be pushed to almost-full levels by the end of April and stretch higher in May, New York-based consultancy PIRA Energy Group said Tuesday.
As traders try to take advantage of an incentive to buy now and sell at higher prices later, owing to a contango market structure for crude, inventories at the US storage hub at Cushing, Oklahoma, have ballooned. Crude storage in the United States has been at record seasonal highs for nearly two months.
Beyond the builds at Cushing, PIRA said in its weekly report that stockpiles in three major Organization for Economic Co-operation and Development markets it tracks will be near practical maximum storage capacity next month.