Reuters: Oil glut sparks top traders to book supertankers for storage at sea

Jan. 08, 2015 12:36 PM ETShell plc (SHEL) StockFRO, TK, SHEL, NAT, GLNG, DHT, TGP, TNP, TNK, TOOBy: Carl Surran, SA News Editor18 Comments
  • Some of the world's largest oil traders are hiring supertankers to store crude at sea, Reuters reports: Trading firms including Vitol and Trafigura, and energy major Shell (RDS.A, RDS.B) are said to have booked crude tankers for up to 12 months in the past week.
  • Freight brokers and shipping sources consider the flurry of long-term bookings unusual and suggests that traders could use the vessels to store excess crude at sea until prices rebound, repeating a popular 2009 trading gambit when prices last crashed.
  • Analysts at JBC Energy say floating storage, while a sign of an oversupplied market, may provide some temporary support for oil prices in the coming weeks.
  • Related tanker companies: TK, TNK, TOO, TGP, TNP, FRO, GLNG, NAT, DHT.

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