Iran Returns to Floating Storage for Its Oil as Buyers Retreat

By Anthony DiPaola, Julian Lee and Alex Longley (Bloomberg) -- Iran is starting to store oil on its fleet of supertankers again as impending U.S. sanctions force the Persian Gulf country to revive a strategy it deployed under previous curbs. The build-up of crude in floating storage offshore Iran signals the effectiveness of the new sanctions imposed by U.S. President Donald … [Read more...]

OPEC Chief Says Floating Storage Shrinking as Market Rebalances

By Angelina Rascouet (Bloomberg) -- Crude oil in floating storage is declining, showing that the market is rebalancing, OPEC Secretary-General Mohammad Barkindo said. Crude in tankers has fallen by an estimated 40 million barrels this year, according to a transcript of a speech delivered by Barkindo on Monday. The drop has been helped by the return of backwardation -- when … [Read more...]

Iran Capitalizes on OPEC Oil Cut to Sell Millions of Barrels Stored at Sea

By Jonathan Saul LONDON, Jan 6 (Reuters) - Iran has sold more than 13 million barrels of oil that it had long held on tankers at sea, capitalising on an OPEC output cut deal from which it is exempted to regain market share and court new buyers, according to industry sources and data. In the past three months, Tehran has sold almost half the oil it had held in floating … [Read more...]

Oil Traders See Glimmer of Profit Ahead in Storing Crude at Sea

By Serene Cheong (Bloomberg) -- Oil traders once again believe it’s worth heading out to sea. The market structure for Brent crude, the benchmark for more than half the world’s oil, now makes it viable to store supplies in a ship to potentially lock in profits on a sale six months later, according to a Bloomberg survey of 6 traders and analysts. In August, cargoes for … [Read more...]

Supertanker TI Europe Back on Market as China’s Unipec Gives Up Floating Storage Lease

By Libby George LONDON, Aug 2 (Reuters) - The UK-based trading arm of Beijing-backed Sinopec will give up the megatanker it booked to park crude in Asia at the onset of the drop in global prices two years ago, sources told Reuters. Unipec UK took over a lease on the TI Europe, one of just two Ultra Large Crude Carriers capable of holding more than 3 million barrels of … [Read more...]