Tank Terminal Week ReportV1

Get actionable (and profitable) insights from the oil markets

Tank Storage Demand Drivers

 

  • Price Volatility
  • Market Structure
  • Arbitrage
  • Commercial Performance Model

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Weekly Tank Terminal Market Report: Understanding How Your Clients Make Money

Are you struggling to understand the value your terminal provides to your clients?

Would you like to know if your clients are making money?

 

This report is specifically designed for commercial managers at terminal operators. It gives insights in the profit potential of oil trading operations. Demand for tank storage capacity is heavily influenced by changes in the market environment, as it alters the requirements of a tank terminal client and its profit potential.

 

To identify which market variables are relevant and how these influence a terminal’s commercial performance, Insights Global has developed unique market reports based on a commercial performance model.

 

The weekly report is based on market fundamentals and dynamics that drive tank storage demand. It will improve the understanding of the world of oil trading and offers tank storage operators an independent view on the market direction.

Price Volatility

Applied to describe fluctuations of oil prices and it relates to the level of uncertainty in the market.

Market Structure​

Contango and backwardation and what market structure means for tank storage operators

Arbitrage

Geographical price differences will lead to increased trade and its impact on the tank storage market.

Price Volatility

Price volatility will stimulate traders to buy low and sell high. In this article you will learn about it and how it influences demand for tank storage.

 

There are other ways to calculate volatility i.e. looking at the daily high and low range of oil prices during a trading session or the estimated volatility of an option (implied volatility).

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Market Structure

Introduction to contango and backwardation.

 

An oil price for immediate delivery is called spot price or cash price while an oil price for delivery at a specified date in the future is called a forward price.

 

When we plot these various prices and order them from short to long term delivery, a forward curve is created.

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Arbitrage

In theory (Investopedia), arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price.

 

It is a trade that profits by exploiting the price differences of identical or similar positions on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.

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Commercial Performance Model

Our model shows the relation between a terminal’s market environment and its commercial performance.

 

The environment is divided into market fundamentals (which have a slow rate of change) and market dynamics (which have a fast rate of change).

 

A terminal that has a good fit with market dynamics will find storage rates are being better supported. Besides market dynamics also market fundamentals influence storage rates.

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Got Questions About our Commercial Performance Model?

Book a 1-on-1 Session to learn how our model can help your tank terminal increase revenue in the complex and ever-changing oil market. Or Call Us +31 850 662 500

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