Global Oil Storage Fee Rental Market Report and Forecast 2024-2032

Global Oil Storage Fee Rental Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the global oil storage fee rental market size reached approximately USD 9.40 billion in 2023. Aided by the fluctuations in oil supply and demand, increased oil trading and arbitrage opportunities, and expansion of global oil production, the market is projected to grow at a CAGR of 4.2% between 2024 and 2032, reaching a value of around USD 13.61 billion by 2032.

Oil storage plays a critical role in the global oil supply chain, providing the necessary infrastructure to manage fluctuations in production, consumption, and transportation. The market encompasses the costs associated with leasing storage facilities for crude oil, refined products, and other petroleum derivatives. These facilities include tank farms, floating storage units, and underground caverns. The market for oil storage fee rentals has expanded significantly in recent years due to several factors, including geopolitical tensions, variations in global oil demand, and the increasing need for energy security.

One of the notable oil storage fee rental market trends is the rising importance of oil storage solutions, which is driven by fluctuating oil prices, the ongoing volatility in global oil markets, and the need for countries and companies to manage their oil reserves effectively. Additionally, oil storage plays a crucial role in supporting trading activities, as companies often store oil to take advantage of price differentials in futures markets. The growing trend of building strategic petroleum reserves (SPRs) by various countries to ensure energy security further propels the demand for oil storage facilities and, consequently, the rental fees associated with them.

One of the primary drivers of the oil storage fee rental market growth is the fluctuations in oil supply and demand. The global oil market is highly susceptible to changes in production levels, geopolitical events, and shifts in consumption patterns. When oil supply exceeds demand, companies and governments must find storage solutions to hold the excess oil until market conditions stabilise. Conversely, during periods of high demand, stored oil can be released into the market to meet consumption needs.

These supply-demand imbalances often create opportunities for oil storage providers, as companies look for temporary storage solutions to manage their inventories. The COVID-19 pandemic, for example, led to a significant reduction in oil demand, causing a surplus of crude oil that needed to be stored. This drove up the demand for oil storage facilities and, by extension, rental fees. As the oil market continues to experience fluctuations, the demand for oil storage solutions is expected to remain high, supporting the market growth of oil storage fee rental services.

As per the oil storage fee rental market analysis, governments around the world are increasingly focusing on building and maintaining strategic petroleum reserves (SPRs) to ensure energy security in times of crisis. SPRs are large stockpiles of crude oil and petroleum products that are held in reserve to mitigate the impact of supply disruptions, such as geopolitical conflicts or natural disasters. These reserves require extensive storage infrastructure, leading to a growing demand for oil storage facilities.

Countries such as the United States, China, and India have been expanding their SPRs in recent years to enhance their energy security and reduce their dependence on oil imports. As governments continue to invest in the development of SPRs, the demand for oil storage solutions is expected to increase, adding to the oil storage fee rental market value. Additionally, private companies involved in oil trading are also building their own strategic reserves to take advantage of price differentials in the market, further boosting demand for storage facilities.

The global oil market is characterised by significant price volatility, which creates opportunities for traders to profit from price differentials. Oil traders often engage in arbitrage, a practice in which they buy oil at a lower price, store it, and sell it at a higher price when market conditions are favourable. This requires access to large-scale storage facilities where oil can be held until it is sold. As a result, oil storage plays a critical role in facilitating trading activities and enabling traders to capitalise on market fluctuations and consequently driving up the oil storage fee rental market share.

Market Segmentation

The market can be divided based on product type, application, and region.

Market Breakup by Product Type

• Floating Roof Tanks
• Fixed Roof Tanks
• Bullet Tanks
• Spherical Tanks
• Others

Market Breakup by Application

• Crude Oil
• Gasoline
• Aviation Fuel
• Naphtha
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global oil storage fee rental market. Some of the major players explored in the report by Expert Market Research are as follows:

• ExxonMobil Corporation
• Royal Dutch Shell plc
• BP plc
• Chevron Corporation
• TotalEnergies SE
• Sinopec Limited
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.