The Saldanha Bay storage hub is said to be nearing capacity
For some context, Saldanha Bay is a vital hub for crude oil storage because of its strategic location in which it allows for transport to demand centers in both Europe and Asia.
According to Bloomberg, the hub boasts about 45 million barrels in capacity but S&P Global’s latest report highlights that it has the capacity of up to 60 million barrels.
Nonetheless, sources familiar with the hub’s operations has told Bloomberg that the site is nearly at capacity – adding that there might be just room for a couple of tanks holding specific crude grades, but it is full otherwise.
This situation has already been forewarned by many oil traders and pipelines over the past few weeks and with Saudi Arabia continuing to flood the market, what we may be left with are a boatload of oil barrels going to be stuck at sea at this point.