Trending Discussions. By Tom Nolan Started 22 hours ago. Using vessels as floating storage for crude oil: A risky business Global | Publication | April 2020 Back to shipping law insights. “Oil prices are up, and backwardation has widened in expectation of a tighter crude market,” said Serena Huang, Asia lead analyst at data analytics firm Vortexa. In January-May 2019, oil floating off Venezuela accounted for 23% of global floating storage, rising to 32% in the second quarter so far. Photo: Saudi Aramco. ... floating warehouses to absorb the overflow on a scale never seen before. Total Views: 16 . Our Standards: The Thomson Reuters Trust Principles. See here for a complete list of exchanges and delays. Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction. Oil (General) Oil floating storage 241. (Reuters) - Traders have accelerated crude oil sales from floating storage in December to meet higher demand in Asia as the region’s refineries throttled up for peak winter consumption, trade sources and analysts said. Numbers in Singapore rose over the last quarter of 2019, as oil traders and shipowners sought to secure extra supplies with floating storage of IMO 2020‑compliant low‑sulphur marine fuels. Numbers in Singapore rose over the last quarter of 2019, as oil traders and shipowners sought to secure extra supplies with floating storage of … This compares with 11% in 2018. 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GLOSSARY: Floating storage units (FSU) Floating storage units to take the form of a large barge in contrast to supertankers that are associated with FPSOs. We will not share your email address.You can unsubscribe at any time. Welcome to the floating storage edition of Oil Markets Daily! Oil floating storage TN. Proved Oil Reserves Remain Flat, Natural Gas Reserves Decline. Ships Turn Into Floating Storage Units for Oil and Gas as Chinese Buyers Back Out As the coronavirus outbreak spreads, shippers are warehousing an increasing amount of fuel on the high seas Floating storage happens when the spot price of oil gets so depressed relative to later months that traders can buy cargoes, put them on ships, and sell them later at a profit -- … It has the capability to store and offload oil and gas but it doesn’t possess the ability to process it. Proud Boys leader arrested for property destruction ahead of DC protests. Backwardation removes the incentives for traders to store oil in floating storage. Traders have accelerated crude oil sales from floating storage in December to meet higher demand in Asia as the region's refineries throttled up for peak winter consumption, trade sources and analysts said. Firat Kayakiran, Javier Blas, and . Use of cookies by Norton Rose Fulbright. There are more cars on the roads. October 17, 2019. * Global floating storage drew by the most in Dec - Vortexa * Crude stored on ships at lowest levels since April - Vortexa. Fuel oil floating storage options loom in Europe. Traders Accelerate Oil Sales from Floating Storage to Meet Asia Demand 01.11.2021 - NEWS January 11, 2021 [Reuters] – Traders have accelerated crude oil sales from floating storage in December to meet higher demand in Asia as the region’s refineries throttled up for peak winter consumption, trade sources and analysts said. All of which might give the impression that the much-ballyhooed floating-storage … LONDON — Global fuel oil demand may be holding up better than its jet fuel and gasoline peers, but with inland storage facilities at high levels it appears only a matter of time before the economics of floating storage in Europe start to make sense for the marine fuel, according to market sources. The rollout of COVID-19 vaccines has also lifted hopes for fuel demand recovery in 2021 and flipped Brent’s market structure into backwardation, reducing incentives for traders to store oil. The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. Firat Kayakiran, Javier Blas, and . U.S. With a crude oil price of 46.59$ per barrel 14 and a cargo size of 2 million barrels, the principal on the floating storage trade is $93.18 m for the crude oil alone. Oil prices have slumped 35% sending shockwaves through global markets already reeling from dwindling demand due to warm winter conditions and the coronavirus contagion. By Grant Smith and Sheela Tobben on 5/12/2020. In comparison, a modern non-Eco VLCC, less than 15 years old, can command a one year time charter rate of around $33,000/day, brokers said. Skip to main content. Homayoun Falakshahi, oil and gas analyst at Kpler, said: “The current forward curve isn’t incentivising storage, so traders will want to release stored crude.”, “Key things to watch will be how quick vaccines are diffused and the length of current lockdowns.”, Reporting by Koustav Samanta and Shu Zhang in Singapore; Editing by Florence Tan and. They are frequently linked to oil traders and mainly conduct ship‑to‑ship transfers to other bunker units or smaller tankers. To trading getting Back to work Ahead of IMO 2020 Wave of floating storage are being fixed for around at... 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