Home Innovation Storage Oil Tanks in High Demand in th...

Oil Tanks in High Demand in the US as Prices Slide and Supply Grows

Storage

Business Honor
27 May, 2025

Crude storage demand rises as traders prepare for excess OPEC+ oil hitting markets.

In expectation of a significant rise in production from OPEC and its partners (OPEC+) traders are climbing to find room for oil, according to data from storage broker The Tank Tiger. OPEC+ recently announced plans to raise oil production for a second straight month. If current plans move forward, the group could return up to 2.2 million barrels per day to the market by November. This expected surge in supply is prompting traders to look for places to store oil now, betting that prices may rise again later.

Oil prices have dropped recently, hitting a four-year low of $58.40 per barrel. That drop made it more attractive for traders to store oil and sell it later when prices recover. The market is showing signs of a supply glut forming in the coming year, adding urgency to storage demand.

As a result, storage inquiries on The Tank Tiger’s platform have nearly doubled, reaching 3 million barrels for June. Storage requests are coming from major U.S. oil centers, such as the Midwest and the Gulf Coast. Steven Barsamian, Chief Operating Officer at The Tank Tiger, noted that the current surge in storage demand is the largest the company has observed since the COVID-19 pandemic.

Although new storage requests for June have slowed slightly due to a small market recovery traders are now looking even further ahead. The extraordinary decision by Barsamian's team to already hunt for space for January at the Cushing, Oklahoma hub indicates serious concerns about the market's future. Additionally, U.S. oil stocks are increasing, reaching their highest level since July 2024 at roughly 443.2 million barrels.