Saturday, June 6, 2009

Supertankers Storing Oil Plan to Deliver Cargoes, ICAP Says

A fifth of supertankers being used to store oil are scheduled to deliver their cargoes, according to ICAP Shipping, a unit of ICAP Plc, the world’s biggest broker of deals between banks.

A so-called notice of redelivery was issued for seven of 33 supertankers storing crude, Simon Chattrabhuti, a London-based analyst at ICAP, said by e-mail today. There “may well be others storing or that have given notice,” he said. Two new carriers were hired to store oil, the analyst said. The amount of oil stored at sea climbed to the highest in at least two decades because traders could buy the commodity, sit on it and take advantage of higher prices in the future, according to Frontline Ltd., the biggest supertanker operator. Hamilton, Bermuda-based Frontline on May 28 estimated as many as 60 supertankers were storing oil. The storage trade boosted demand for vessels as oil supply and demand contracted. BP Plc, Citigroup Inc.’s Phibro LLC, Royal Dutch Shell Plc and Koch Industries Ltd. were among the companies that sought tankers to store cargoes. Most of the crude oil is being stored in the Gulf of Mexico and in Europe, according to E.A. Gibson Shipbrokers Ltd.
Read More

No comments: