January’s auction for crude storage space at the Louisiana Offshore Oil Port saw sustained high prices for a second month in a row, after prices jumped in December’s auction due to increased demand for offshore storage, according to the host of the auction. With LOOP storing sour crude and the Mars outright assessment in contango for the next three months, according to Platts data, there is an incentive for sour crude storage in the short term, and as a result, bidding for LOOP storage space is becoming increasingly competitive, according to one source. The front-month/third-month Mars spread closed at minus $1.85/b Tuesday, compared with minus 80 cents/b September 1, when the cost of LOOP crude storage was around 14 cents/b. As LOOP caverns fill up and the number of players increases, the level of competition could intensify in the coming months. Article continues below… Crude Oil Marketwire delivers vital […]