Floating Storage Unwind To Pressure Brent

Floating Storage Unwind To Pressure Brent

Declining floating storage inventories are set to pressure Brent prices, according to a commodity market research note from Deutsche Bank and reviewed by ValueWalk.

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According to Deutsche’s research, the dynamics of the floating storage market aren’t supportive of current Brent prices. Specifically, data shows that after touching 186 million barrels in early March, floating inventories have begun to decline, and the resulting selling is adding yet more supply to the market.

Since the start of 2014 global floating storage inventory has ranged between 80 and 180 million barrels and after peaking in early March, storage is now on the decline.