The global supply glut means millions of barrels of oil are sitting in tanks at oil fields and ports waiting for export across the world - but Goldman Sachs has warned storage space is running out.
There’s no precise figure on oil storage capacity, with very little data outside of the OECD. But Goldman's head of commodities research, Jeffrey Currie, thinks the the world is hitting capacity and this is contributing to the downward spike in oil prices.
Oil prices are currently hovering around $30 per barrel.
"When we look at these storage levels in Cushing, Oklahoma, which is where the Nymex prices, there's about three million barrels of spare storage capacity, which is nothing in the grand scheme of things," he told CNBC.
Goldman previously said it expects oil prices to remain volatile and without trend during the first half of this year, trading at between $20 and $40 per barrel.
"We think this is going to be a feature of the market: you just continue to slam against those capacity constraints in the coming months, creating a lot of volatility without any real trend," Currie added.