April 30th – Report on Oils

April 30th 2020


We transcribe hereunder an interesting report prepare by Odin-RVB Storage:

Storage Market Report pril 2020

After being quoted and interviewed by newspapers and tv stations, here the original ODIN-RVB Tank Storage Solutions report.


April will go into the history books as the first time ever that the oil price (WTI) went below zero. Since storage capacity plays a crucial part in this, our industry was put in the spot lights. The bottleneck in the USA is called Oklahoma. In combination with global oversupply, the reduced demand as result of Covid-19 and the lockdown, this oil price madness was created. Any tank capable to store crude oil has been rented, since profits can be made and solutions are looked for to keep pumping up the oil.

The demand of tankage is extremely high and although there is only very limited availability we haven’t seen very high storage rates. Of course the rates have been higher than 6 months ago, but the terminals favor 2 year terms over high rates and short term contracts. Terminals who had no availability begin March are now complaining, since they didn’t benefit from higher rates or renewed contracts and they only see a slowdown of activity, since product is waiting to sold at higher rates at a later date. The available capacities that we are finding and bringing to the market are the typical ‘oddballs’ that is to say that with each terminal there is a certain challenge either in the tank setup, the draft or the import/export limitations. Even mothballed terminals are being brought back to life or maintenance has been postponed where possible. Especially the outer ports which suffered the most from backwardation, finally see healthy rates and business for their tanks and caverns.

Next to this extreme occupancy in land based tanks and underground in caverns, we have seen a surge in floating storage as well, with time charter rates shooting through the roof. Millions of tons of crude and petroleum products float at all the well known anchorages of the world. Waiting for a home, a tank or an offset market. Although the oil producing countries ( OPEC as well as others, including Russia ) have now agreed on cutting the output, they will still produce more than needed. But without an outlook when this oil or products are needed, it can be a very expensive exercise. At time charter rates of roughly $20,000 pd for a M/R, the comparison with shore storage is already 3 times as expensive. Now those rates jump up, the floating storage is not economical anymore, but will be considered for short term solutions.

ODIN-RVB Tank Storage Solutions


With the WTI crude oil price dropping below $ 0, an obvious effects is that any crude oil storage in the US that was not committed yet has been taken in the meantime. The only options left are tanks that are to be refurbished, with lead-times varying between 6-12 months, or new build tanks with a lead-time of at least 12 months. For other product groups however, particularly for (easy) chemicals and diesel, there are still tanks to be found.

Chemical market

In the chemical market we see quite some players facing trouble, reorganizing the plant output now that global consumption has reduced due to Covid-19. Expansion plans are withdrawn and some producers even have to terminate their existing storage contracts. To build up and have stock doesn’t outweigh the costs of it anymore. On the other hand we see an increased demand for spot storage which often has to do with the fact that customers can’t receive product in today’s market forcing suppliers to look for temporary storage in a market that is highly congested. 2nd half this year a lot of new capacity is coming to the market and after the summer we expect to see signs of oversupply in the North Western European market.

Biofuels & vegoils market

We see an increased demand for ethanol storage, now that sanitizers play such a crucial part in today’s life. Unfortunately it remains rather difficult to find a suitable tank for this product as permitting and high excise keep preventing terminals from offering space for just a short period. As vegoils tank occupancy is at its limit for quite some time now, more and more terminals that are still left with tanks for easy chemical products and who are facing difficulties to rent the space out for a longer period are studying the possibility to offer tanks for FAME or HVO. They feel more comfortable in jumping into that market, rather than keeping the tanks empty for spot chemicals requests.

The biodiesel storage in heated tanks in the ARA-region remains strong. Due to the short supply, available heated opportunities within ARA are taken quickly. Consequently outer ports or barge terminals are being booked provided they have the heated tanks.

Middle East/Asia

The number of terminals in the Middle East is huge, however you have to be very lucky to find any free storage in any of these terminals. There are only a few leftovers which can be used for some chemicals or for the local market. In China we see a 50,000 m3 crude for example but since supply to such a tank isn’t economical, this tank is still available.

Long term projects

The availability list includes also some new build and long term projects where investments are required which can only be covered by long term contracts. Depending on the project it can be 2 year contract, but more common is 3-5 year contracts to get such projects alive. The list is much longer, since terminals with spare land are always interested to expand and build against a contract.

Meet the team

Till further notice we will only virtually meet. Video calls are the new wining and dining. However our team is available.

Here the link to our recent tv performance

Please find a snapshot of opportunities(available tanks at the terminals)

capacity (m3) product/location available from


2.100 diesel/gasoil ARA Q3 2020

125.000 dirty petroleum prods ARA Q4 2021

11.785 chems/various ARA now

15.500 chems ARA Q3/Q4 2020

17.000 vegoils (h) ARA Q1 2021

2.400 chems Netherlands now

2.850 vegoils (unh) Netherlands now

5.000 bitumen Netherlands now

North Europe

30.000 diesel/biodiesel Germany (North) Q1 2021

40.000 diesel/gasoil Germany (North) Q1 2022

3.300 chems/various Germany, River Rhine now

1.800 chems/vegoils UK (West Coast) now

100.000 diesel/gasoil UK (West Coast Q1 2021

8.000 chems/various UK (East Coast) now

1.690 specialty chems UK (East Coast) now

5.000 biofuels/vegoils Denmark now

14.650 diesel/gasoil Denmark Q3 2020

5.500 diesel/gasoil Norway Q3 2020

5.500 diesel/gasoil Norway Q1 2021

340.000 crude Finland Q3 2020

8.500 gas Finland now

6.850 chems/various Estonia now

10.000 vegoils Poland now

South Europe/Med/Black Sea

20.000 light ends France (South) now

5.960 chems France (South) now

360.000 crude/cpp NW Spain Q4 2021

15.000 chems/various East Spain Q1 2021

89.000 dpp/cpp NE Italy Q2 2021

363.000 crude Croatia Q2 2021

6.600 light ends Albania now

16.500 vegoil/(bio)diesel Albania now

66.500 chems/diesel Turkey now

30.000 light ends Georgia now

100.000 crude Georgia now

8.400 chems Russia (SW) now


21.568 chems Egypt now

3.000 chems Kenya now

10.000 chems Tanzania now

20.000 diesel/gasoil Tanzania now

20.000 dirty petroleum prods Mozambique now

Middle East

10.000 bitumen India (Gujarat) now

47.000 chems/cpp UAE now

30.000 chems/cpp UAE Q4 2020

6.000 chems UAE now

Far East

8.000 chems China (North) now

14.500 chems China (South) now

6.000 chems China (Gr. Ningbo)now

3.000 chems China (Yangtze River)now

8.000 chems China (Shandong) now

615.000 crude/dpp South Korea Q1 2021

30.000 vegoils Malaysia now

50.000 chems/various Gr. Singapore now

North America (bbl)

585.000 diesel/gasoil North Carolina, USA now

255.000 chems Louisiana, USA now

25.000 diesel/gasoil Texas, USA now

139.200 chems Texas, USA now

115.000 clean petroleum prods Texas, USA Q4 2020

250.000 chems/cpp Texas, USA Q2 2021

250.000 chems/cpp Texas, USA Q3 2021

150.000 clean petroleum prod Florida, USA Q4 2020

Central & South America

365.079 cpp/crude Aruba Q3 2020

40.000 chems/clean prods Puerto Rico now

178.745 diesel/gasoil Colombia (caribbean) Q3 2020

36.836 dpp/ccp Colombia (caribbean) now

10.000 chems/vegoils Argentina now

23.000 diesel/gasoil Argentina now

3.000 dirty petroleum prods Argentina now

Odin-RVB Storage WebOdin-RVB Storage Linkedin

Will keep you posted.

Best regards,
Antares Servicios Maritimos S.A.

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