Oil traders draining key storage hub as demand booms

London

OIL traders are emptying one of the world's largest crude storage facilities, located near the southernmost tip of Africa, as the physical market tightens amid booming demand and Organization of the Petroleum Exporting Countries (Opec) production cuts.

Total SA, Vitol Group and Mercuria Energy Group Ltd are selling crude that they hoarded in Saldanha Bay, South Africa, during the 2015-2016 glut when the market effectively paid traders to store oil, according to people familiar with the matter, who asked not to be named discussing private operations.