Independent oil storage: fundamentals help to overcome the fears

The worldwide independent oil-storage business emerges from a testing year in better shape than many had forecast, Martin Quinlan writes

FOR A business earning its revenue by handling flows of refined oil products, a downturn in world oil consumption could have been serious. Despite consolidation, independent storage is still mainly locally based and fragmented, and it becomes highly competitive when capacity is in surplus. Hence the forecasts for trouble as a result of the world's economic difficulties. At some locations, there has been trouble – volumes are down and fees are under pressure. But at the world's main storage locations, serving the main refining centres, business has been buoyed-up by structural changes. Trade between refining hubs, particularly long-haul trade, continues to grow while product specifications