Saldanha oil tanks off limits to many as market floods

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The 45-million-barrel Saldanha Bay oil storage terminal in the Western Cape, the largest in the southern hemisphere, has been a vital outlet for surplus crude during past slumps.

The 45-million-barrel Saldanha Bay oil storage terminal in the Western Cape, the largest in the southern hemisphere, has been a vital outlet for surplus crude during past slumps, including the Great Recession of 2008 to 2009.

The facility is close to full, said four people with knowledge of the site’s operations. Several other people said all of the capacity there had been leased to trading houses, but space remained in some of their tanks and they expected additional crude deliveries.A spokesperson for South Africa’s Central Energy Fund, which manages the country’s energy assets, declined to comment.

International lockdowns aimed at slowing the spread of Covid-19 are emptying roads, shutting businesses and factories, and keeping billions of people at home. Multiple analysts have predicted that, based on current supply, demand and inventory levels, the world is just weeks away from running out of places to store the glut.

 

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Luckily its in the ocean, it will be looted like the Transnet diesel saga on that pipe👌

We should buy oil at the current prices and sell it when the prices recover, hopefully we can recover that amount we lost previously. But then we never knows with some people.

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