Buckeye Says Storage is Key Amid Price Slump

摘要

A combination of lower oil and product prices and the structure of US crude’s forward curve will strengthen earnings from storage facilities, according to midstream firm Buckeye Partners. US benchmark West Texas Intermediate (WTI) is currently locked in a deep contango, with the front-month contract trading at a discount to those further down the curve. The forward curve for gasoline is also in contango, while diesel’s curve shifts into contango starting with the May contract.