Physical oil is coming under pressure as trade houses unwind a profitable storage play after several months that saw them holding millions of barrels on tankers at sea. A drop in the volume of crude stored for speculative profit is putting more supply into an already saturated market, elbowing out new loadings leading to a build-up of unsold West African, North Sea and Mediterranean oil. “When the contango started, it created a demand,” said Tamas Varga of PVM oil brokerage. Now “they are creating additional supply”. “The structure of the market should weaken significantly,” Varga added. “There is just lots of oil around in the U.S. and globally.” Oil prices collapsed by 60 percent between June last year and January 2015, pushing the cost of oil for immediate delivery to a big discount below future prices and making it profitable to buy oil and store it for sale […]