Tanks: close to the brim. File image/Pixabay.
The global oil glut could see Western Canada running out of storage capacity unless oil production is pared back, an oil analyst has said.
To put a brake on the rapidly filling up storage space, Western Canada should cut production by 11%, according to Rytsad Energy.
"Western Canada's storage infrastructure has a generally accepted maximum storage capacity of approximately 40 million barrels," the analyst said.
"Based on our calculations, more than 30 million barrels of crude oil and diluted bitumen is already held in storage, and the volume is likely to edge towards the high end of capacity by the end of March under current production assumptions," it added.
Anecdotally, bunker players in Europe have noted the build up of very low sulfur fuel oil stocks.
That situation is largely seen as the reason behind the weakening price of 0.5% sulfur fuel oil.