Cold storage: traders shift oil products out of tanks as short-term demand soars

Some energy traders in Southeast Asia are cutting their use of storage tanks as short-term demand for oil products soars, hitting companies that rent out storage at a time when many of them have just expanded their capacity.

Three traders told Reuters they have cut the amount of oil they hold in tanks or decided not to renew storage contracts in the past year.

A shift away from storage could potentially be bad news for tank operators running in the region like the Netherlands` Vopak and Oiltanking, a subsidiary of Hamburg-based Marquard