Offshore oil port leasing space to traders
BATON ROUGE - Louisiana's offshore oil port, with huge underground storage caverns, was built to handle imported oil but is now leasing space to traders who need to store U.S. crude.
Sources report that the Louisiana Offshore Oil Port recently auctioned 11.3 million barrels of monthly storage space and has scheduled another auction Tuesday.
Global production now exceeds consumption by about 1.5 million barrels a day.
Analyst Brian Busch says U.S.-produced crude is piling up at Cushing, Oklahoma, the country's major oil hub. But he says that's getting close to capacity, and some storage fees are going up.
But he notes that LOOP requires delivery at a specific date and does not have incoming pipelines. That means oil must be shipped to LOOP on barges.