Oil Tanks Are So Full That Traders May Stow It on Pipe Networks
By Joe Carroll
, Catherine Ngai
, and Michael Bellusci
March 25, 2020, 9:23 PM GMT+2
One pipe operator wants customers to prove they have a buyer
Crude inventories are piling up at storage hubs across U.S.
The glut of U.S. oil is growing so fast that at least one pipeline owner is concerned wily traders may try to stow away crude on its network until prices improve.
Plains All American Pipeline LP is requiring customers to prove they have a buyer or place to offload crude they’re shipping through the company’s pipes, according to people familiar with the matter. The idea is to prevent anyone from using Plains’s network to park oil in lieu of higher price