A rising global middle distillate surplus is displacing a shrinking crude overhang held in floating storage.A deep contango - with spot prices below forward markets - is encouraging companies to store gasoil, as a weak economy and the end of winter depress prompt diesel and heating oil demand (see graph). Onshore storage is close to full in northwest Europe. Independent storage in the Rotterdam region was holding 2.7mn t at the end of May, the highest level in over 10 years (AGM, 1 June, p5).
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