Oil companies around the world are dealing with a range of challenges due to the sudden decline in demand following the outbreak of the Covid-19 pandemic, including paying rising prices to lease third-party storage spaces. North America is battling a severe shortage of storage capacity. Asia-Pacific, on the other hand, is dealing with inflated storage costs that have become nearly 40% dearer due to excessive demand. Saudi Arabia is filling up its huge spare storage capacities with domestic production to export these crude volumes as and when global oil prices appreciate. Meanwhile, in Europe, maintenance activities at storage terminals are being delayed by the Covid-19 outbreak.
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