According to price reporting agency Argus Media, VLCC tanker bookings since March with the option to store oil has reached 71, reports Ship & Bunker.
Oversupply in crude markets
The number of VLCC tankers booked since March with the option to store oil has reached 71, as the current oversupply in crude markets fills land-based storage.
Argus reported, the 71 VLCCs are in addition to at least 31 Suezmaxes and 23 Aframaxes booked on similar terms.
VLCCs as floating storage
Apart from its significance for the crude oil market, this also means that up to 10% of the global VLCC fleet may soon have significantly reduced bunker consumption while they serve as floating storage.
Freight rate
The 71 VLCCs have been booked at an average freight rate of $77,000 per day, Argus said.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Ship & Bunker
