Oil Market Shows Fear That U.S. Is Running Out of Storage Space
- Vitol sees demand down as much as 20 million barrels a day
- WTI futures advance 2% on Wednesday in third day of gains
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The U.S. oil market is displaying worries that stockpiles are going to run out of storage space, with futures being whipsawed as a growing glut counters economic stimulus measures.
While crude in New York rose for a third day as the U.S. made progress on an economic aid package, the so-called WTI cash roll traded down at the lowest level since December 2008 on expectations that inventories at the delivery point for U.S. futures would balloon in coming weeks and months. Gauges of the physical market for actual barrels of crude are also pointing to weakness.