Glencore oil storage
A joint venture between Glencore and logistics firm Tristar Group has reached a deal to acquire a 37% stake in South Africa's largest oil storage facility. The deal comes as oil traders prepare for a possible global oversupply, which could drive demand for large scale storage. [PDF Version]FAQS about Glencore oil storage
Why is Glencore acquiring 37% of South Africa's largest oil storage facility?
A joint venture between Glencore and logistics firm Tristar Group has reached a deal to acquire a 37% stake in South Africa's largest oil storage facility. The deal comes as oil traders prepare for a possible global oversupply, which could drive demand for large scale storage.
Will Aquarius energy buy Glencore?
Aquarius Energy first announced the transaction in 2023, but final agreements were only concluded this week. The deal strengthens Glencore's presence in the energy logistics space, especially at a time when global oil markets are shifting.
Why did Glencore buy Saldanha?
The deal strengthens Glencore's presence in the energy logistics space, especially at a time when global oil markets are shifting. The oil storage hub at Saldanha is strategically positioned along international shipping routes and has been used during past market imbalances, including the 2020 global oil surplus.
Why was Glencore acquired?
The company explained that the asset gives it leverage to respond to rising storage demand expected in periods of increased supply. Apart from this, the acquisition marks a notable move by Glencore, whose energy business typically operates fewer physical assets compared to its large metals and mining operations.
How much does Glencore make a year?
In a separate update, Glencore said on Wednesday it had revised its long term annual profit forecast for its global trading operations. The company increased its projected range to between $2.3 billion and $3.5 billion, up from its previous estimate of $2.2 billion to $3.2 billion.