Reuters exclusive on Saudi exit, China entrance at key Caribbean oil storage

On Dec. 30, Reuters broke news on one of the most symbolically significant developments in the global oil market this year — Saudi Arabias decision to abandon a crude oil storage lease it has held since 1995 and state firm PetroChinas decision to move in. The five-million-barrel storage tanks, while small in real terms, had for years allowed the worlds biggest oil exporter to reassure its top customers in the United States that it could meet any short-term supply emergencies within days; quitting the deal was the clearest sign yet that it was shifting its focus toward the expanding Chinese market rather than the shrinking U.S. It was also a stark indication of the scale of PetroChinas global trading ambitions, as China`s biggest oil company seeks to become a forceful presence in the U.S. crude and fuel market, where global prices are still determined. Bloomberg picked up the story citing Reuters; Dow Jones matched the story nearly two hours later from a single source, also citing Reuters. Other industry publications and analyst notes followed. For traders working in the U.S. physical oil markets, this was essential intelligence about the opaque Caribbean storage sector, which is increasingly important as the persistent contango in oil futures prompts traders to fill up oil tanks worldwide.