Global oil glut creates storage crunch
The current downturn in oil prices has meant more crude oil is being stored, rather than refined or sold. This has led to huge pressure on storage facilities around the globe. Some traders have taken to "floating storage" where oil is now being stored on the large tankers used to transport crude. According to people in the industry, hundreds of tankers are on standby off the coast of the emirate of Fujairah where onshore storage facilities are now at full capacity.