Brent can jump to $40 by 2020-end; India should stockpile crude oil now
Oil storage is about the only thing in demand in the crude market right now. The coronavirus (Covid-19) pandemic has obliterated consumption and forced producers and traders to store more oil on the water as land-based facilities near tank tops. While India will fill its caverns with crude, the lack of space means it’s also an opportunity lost.
The world’s third biggest oil importer is planning to fill up its strategic petroleum reserves (SPRs) in the coming months. India’s combined capacity of 5.33 million metric tons (mmt) in three locations in southern India – Vishakhapatnam, Mangalore and Padur – is just over half full.
