Pipeline operators asking oil producers to reduce output, growing glut is overwhelming storage capacity
Bloomberg reports that Plains All American Pipeline asked its suppliers to scale back production,
- and Plains and Enterprise Products Partners is requiring customers to prove they have a buyer or place to offload the crude they are shipping
The companies made the requests during the past week.
This is a clear sign that a growing glut of crude is overwhelming storage capacity. Pipeline companies are running out of storage space for oil. Coronavirus related lockdowns are resulting in plunging demand.
(Earlier on oil this weekend:
- FT: Global petrol demand set to drop as much as 50% in some key markets
- OPEC presidency urged an emergency meeting on collapsing prices, members said no.