Cheap oil boosts diesel supply forcing companies to charter VLCC vessels to cater to slowing demand.
French oil major Total and Oil trader Vitol has provisionally chartered the VLCC. A VLCC can carry roughly 2 million barrels of oil. Both vessels are newly built, which makes it cheaper to ship.
“If you grab the barrels at the right time, the unusual arbitrage from the far east to (Europe) for ULSD works,” a source said.
Prices of cargoes loading in current months are cheaper than those loading in later months, also makes floating storage possible if the traders are not able to find buyers, they added.
Source: Reuters
