Just over a year into production cuts lead by OPEC and Russia, oil markets in Asia have tightened noticeably as significant amounts of excess crude have been taken off tankers used for storage and delivered to customers across the region.
Shipping data shows about 15 super-tankers are currently filled with oil floating off the coasts of Singapore and surrounding Malaysia, Asia’s main trading and storage hub for crude coming from the Middle East to Asia.
That’s slightly less than last November, and half the number of tankers used for storage in mid-2017.
Traders say onshore tanks in the region, including at Vopak’s site in Johor, Malaysia, are also not booked out any more, marking a turnaround from 2016/17 when a situation known as tank-top was feared in which oil markets are so bloated that they run out of storage. Read More…