Renewed concerns over storage capacity and lack of demand drops US oil prices again
Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016.
Last week, US oil fell below zero for the first time as investors scrambled to offload it before the expiry of a trading contract, but could not readily find buyers.A key worry for traders is that storage facilities – particularly in the United States – cannot cope with the oversupply. The continued concerns about storage overshadowed signs that some countries – including Kuwait and Algeria – are starting to slash production in line with a major agreement hammered out this month.
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