Floating storage volumes soar as tanker rates and forward contract values dive
Floating oil storage hits 196m barrels this week as April contracts materialise and land storage dries up. At the same time tanker daily rates fall off and FFAs sink. Floating storage volumes will likely keep rising over the next few weeks as more contracts materialise and land storage pressure forces more oil to stay at sea. But with global demand sinking and supply cuts coming, daily rates for tankers are rapidly losing value. A new balance in the market also brings into question for how long high contracts for floating storage will last
In line with the anticipated trend, volumes of floating oil storage grew again but this time by a massive 20% in the past week. Meanwhile, daily VLCC charter rates decline forcefully