Independent storage under pressure as volumes fall

Capacity expansions, coming at a time of trimmed volumes, have raised competition in the worldwide oil storage business

Oil-market trends have been testing for the independent oil storage operators. In Asia, growth in oil demand has slowed, while the US and Europe have seen reductions. Yet terminal capacity, particularly in the Singapore area and on the US Gulf coast, has been increasing, and is set to increase further over the coming few years. Trends point to a continuing competitive market for storage services, with some additional risks. The risks are different in each of the world's main storage hubs. In Singapore, there is a risk that new refining capacity in Asia will depress the long-haul import trade, at a time when new storage capacity is being constructed in Malaysia and Indonesia. In the US, the