It is now costlier to rent oil or fuel storage space at the Asian hub of Singapore. Market participants attributed the rising costs to the limited space availability amid plummeting demand for oil products such as gasoline, gasoil, and diesel.
The cost to store oil or oil products has climbed by about 38% since the outbreak began. Traders said that storage operators had offered no new leases in Singapore. They expected that capacity would be filled to the brim in the coming weeks.
Storage capacity across the Singapore Straits stands at about 140 million barrels. Storage in Singapore was said to be at 70%-80% of capacity by mid-February. Singaporean tanks are typically leased long term, around 12 months.
Monthly renting costs for the short term have surged to $6.90-$9.40/cubic meter, compared to $5.00-$6.30/cubic meter at the end of January.
