Storage tends to be a ho-hum business, until it isn’t. With oil demand diving, plentiful production, and the oil futures curve in steep contango, storage has become a hot topic. Of course, many midstream companies own and operate storage capacity. Today, we will briefly discuss the implications of storage filling up and what it means for MLPs and midstream corporations. For more context around storage, midstream, and the relationship to the oil curve, please read this article, which has been one of our most read pieces in recent years.
Combining the current demand shock