Infrastructure fund owners of storage terminals are benefiting from the increased demand for storing commodities during the COVID-19 crisis. But some storage sectors are faring less well and M&A in the sector is off the cards for now. Rory Gallivan reports
The coronavirus crisis is hitting many infrastructure funds’ investments hard, but oil terminals are booming as oversupply creates increased demand for storage.
Oil storage tanks, many of which are owned by infrastructure funds, are filling up across the world. Oversupply had already been building up earlier in the year and has been exacerbated by a collapse in demand as economies shut down due to coronavirus restrictions.