A few months ago, international trading houses were busy chartering major tanker vessels, VLCCs, with the intention of buying cheap oil, store it at sea, and then sell the oil at a profit on futures contracts. This development helped boost the rates to towering rates, thus benefiting carriers, but Financial Times now reports that only two of almost 40 vessels originally chartered for the purpose are currently being used as floating storages.
According to the newspaper, trading house Vitol is now selling oil previously stockpiled on tankers, while oil traders at Glencore and Trafigura are leasing their chartered vessels to be used for regular crude oil transports.
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