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Friday, January 9, 2015
With the price of oil in the proverbial toilet firms in all facets of the industry are taking a hit: E&P firms, oil service companies, drilling companies, and even oil traders. The oil traders, at least some of them, have taken things into their own hands by hiring supertankers to store crude at sea. This is not a new move by traders as it was first seen in 2009 when prices last came tumbling down.
Firms like Vitol, Trafigura, and even Shell have all booked crude tankers for up to 12 months, freight brokers and shipping sources told Reuters. The more than 50% drop in spot prices now allows traders to make money by storing the crude for delivery months down the line, when prices are expected to recover.
It does seem as if these traders will fill those tankers, which according to reports they have booked at a substantially reduced per diem rate, rather cheaply. Brent, the global benchmark, fell 19 cents, or 0.4%, to $50.96 per barrel and US oil futures settled up 14 cents, or 0.3%, at $48.79 per barrel on NYMEX.
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