Traders report that Vitol – The oil giant has booked two 90,000 tonne tankers off the coast of Britain to stock diesel volumes for extended periods of time. Also, the Royal Dutch Shell is reported to have booked a 90,000-tonne tanker to store fuel off the NY Harbour.
Tanker ships are eyed as a safe storage devices as, land storage tanks are nearing full capacity, nearly 70% in some cases. The difference between the prompt Low Sulphur Gasoil futures and the November contract, known as contango has widened the price gap by nearly $5.00 per tonne. This further supports the need to find suitable and sustainable storage options. Traders are reportedly on the lookout for storage tankers off the coast of Northern Europe and the eastern US.