Oil storage cost
- Thread starter meir13
- Start date
there is no static cost to store oil, there are way too many variables.
If you didn't already have a contract for space and tried to buy space now, you would have to pay the largest amount that has ever been charged to get a contract. The people who own the space are well versed in the spreads and will capture the lions share of the spread.
The guys making coin on space right now are the ones that hold long term contracts and have had them for some time. (before the market went deep contango).
For future reference, there are no standard costs in anything related to energy, from royalties to drilling costs, everything is negotiated and never stays static.
If you didn't already have a contract for space and tried to buy space now, you would have to pay the largest amount that has ever been charged to get a contract. The people who own the space are well versed in the spreads and will capture the lions share of the spread.
The guys making coin on space right now are the ones that hold long term contracts and have had them for some time. (before the market went deep contango).
For future reference, there are no standard costs in anything related to energy, from royalties to drilling costs, everything is negotiated and never stays static.
Refined products like gasoline and diesel degrade depending on where, how and for how long they are stored. Crude does not.
If kept in an unsealed container the volatiles may well evaporate leaving a much poorer quality crude. Crude wil not degrade if stored correctly, where as gasoline regardless of how it is stored will start to degrade after about 40 days.