Can Renewables Become As Profitable As Oil And Gas? So, a contango storage trade is simply borrowing from the future,” Nolan noted. How's that working out for you? At the beginning of this month, the analyst team at Fearnleys laid out two scenarios for the VLCC market. Receive our cutting-edge 3-part investor education series for FREE. Alaska Arctic Refuge Oil Lease Sale Ends In Flop, Saudi Surprise Cut Continues To Lift Oil Prices, Syria: Oil Tankers From Iran To Syria Intercepted, Oil Prices Continue Climb On Large Crude Draw, GM Presents Cadillac Flying Car For Rich People, Possible Mine Found On Oil Tanker Off Iraq, Why No One Can Solve Texas’ Flaring Crisis. If floating storage does materialize, it could offer some relief to the tanker owners after rates plunged, according to analysts at Clarksons Securities Ltd. and Pareto Securities AS. Alex Longley, March 18, 2020, 1:49 PM EDT GENERAL NORMAN SCHWARZKOPF: The Third Tour, Parler’s New Partner Has Ties to the Russian Government, Thanks to food countersanctiona after 2014 Russia become net exporter of food. * Global floating storage drew by the most in Dec - Vortexa * Crude stored on ships at lowest levels since April - Vortexa. The oil market has seen a dramatic fall in prices due to an excess supply and a substantial decrease in demand due to, amongst other things, the coronavirus. The rollout of COVID-19 vaccines has also lifted hopes for fuel demand recovery in 2021 and flipped Brent’s market structure into backwardation, reducing incentives for traders to store oil. Singapore’s Floating Storage Flotilla Grows Ahead of IMO 2020. Data intelligence firm Kpler said Asia’s crude in floating storage was about 64 million barrels last month, which compares with 149 million barrels in late August, but still far from average levels of 20 million barrels seen in 2018-2019. Use of cookies by Norton Rose Fulbright. GLOSSARY: Floating storage and offloading (FSO An FSO is a simplified version of an FPSO. Data from oil analytics firm Kpler showed that floating storage volumes in Chinese waters came off a peak of 35.4 million barrels on May 23 to 29.4 million barrels as of May 26. The Oil Floating Storage Trade Is On After Crude’s Latest Tumble By . LONDON — Global fuel oil demand may be holding up better than its jet fuel and gasoline peers, but with inland storage facilities at high levels it appears only a matter of time before the economics of floating storage in Europe start to make sense for the marine fuel, according to market sources. This compares with 11% in 2018. 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