Floating Storage For Oil Reaches 2017 High As Traders Employ Aging VLCCs
Outdated supertankers are becoming the storage units of choice for commodity traders looking to take maximum advantage of the new oil price crater, according to a new report by Reuters.
Brokers who spoke to Reuters said roughly 10 very large crude carriers (VLCCs) aged between 16 to 20 years have been employed as excess crude storage since the end of last month. Each unit holds 2 million barrels of oil.
Thirty other supertankers are parked in Singapore and Malaysia's Linggi, largely due to a market condition called contango - where oil futures are more expensive than an order for immediate delivery.
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