It comes as the coronavirus crisis continues to hit energy markets hard, with the world awash with oil and running out of places to put it.
The global public health crisis caused by Covid-19 has created an extreme demand shock in energy markets, with storage space — both onshore and offshore — rapidly filling up.
It comes as the coronavirus crisis continues to hit energy markets hard, with the world awash with oil and quickly running out of places to put it.futures plunged below zero for the first time in history last week. Trading volume was thin given it was the day before the contract's expiration date, but, nonetheless, the move lower was extraordinary.
In the U.S., the country's main delivery point in Cushing, Oklahoma is expected to reach maximum capacity by the end of May. The natural home for all crude oil is a refinery, but refiners must have places to store excess purchases of crude before they are processed. A frac tank typically holds water or a chemical mixture known as frac fluid before it gets pumped into a new well that is being built.
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