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World’s smartest oil traders have taken to the seas

Published : Monday, 25 May, 2020 at 11:40 PM  Count : 308

World’s smartest oil traders have taken to the seas

World’s smartest oil traders have taken to the seas

The waters of the South African oil storage terminal in the Saldanha Bay are getting busier. A small flotilla id of crude full tankers near busy shipping lanes connected to the Atlantic and Pacific Oceans has recovered global demand in the midst of the largest production shutdown in the 160-year history of the oil industry.

Crude ships have been forced to anchor off the coast of the United States, China, Europe and elsewhere, as refiners have been cut back processing and coastal storage tanks have almost run out of capacity. Around the world, tankers are being used instead to store oil.

Most of the reasons for this costly extra storage are obvious: global supply shortages. But there’s more to go on here to play as the world’s essential oil traders have again filled tankers to take advantage of crude prices after they started driving.

Floating supplies of oil are huge. Adequately untrained trainers did not gather on the California coast in April to supply 20% of the world's daily meals, with most still there. Six giant Suezmax tankers, each with about 10 million barrels of crude, anchored for six weeks in Durban, 600 miles east of Salbana Bay. After Spain, southern France and Italy processed cut run or shutter refineries have gathered more tankers around the Mediterranean entrance, in the northwest corner of Africa.

The Saldanha Gulf ships began crude voyages from Nigeria, Angola and the Republic of Congo in early April. They have joined four more ships over the past two weeks, each carrying the same type of crude on the U.S. Gulf Coast.

The region near southern Africa is always a favorite place to wait for buyers in the far corners of the world to hold West African crude cargo. It is safer than locations farther north, where piracy has increased. Depending on where the most lucrative opportunities come from it gives owners the choice to ship cargo to either Asia or Europe.

Holding oil on the ship is more expensive than storing it in tanks on shore, but owners can react more quickly to sales opportunities.

Several ships in South Africa were chartered by leading oil trading firms, including the world’s largest independent oil trader Vital Group; Through Glencore PLC, its ST shipping subsidiary; According to Bloomberg compiled fixture data and Mecuria Energy Group Limited. The presence of these national-large traders suggests that they are not only cargo waiting to flow into waste tanks, but also a visible part of business strategies aimed at creating the greatest signs of recovery in global oil demand.-Internet


Related Topics

Loans   Trading   Oil  

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