Floating oil storage trading boosts oil tanker market

Despite the rise in oil prices, floating oil storage transactions continue to rise, which continues to push the tanker market stronger. In the past 4-6 weeks, more and more ships on the market have been used for floating storage, and it is surprising that the recent floating fuel storage transactions of VLCC have continued to rise in recent weeks.

In the current charter market, there are also reports of related floating oil storage transactions in the near future. In fact, the number of ships used for floating storage in the oil tanker market is still rising. According to the report, one-third of the ships that received the lease agreement at the beginning of this year are currently used for floating storage. Among them, most of the oil tankers are traded in the Arabian Gulf, and some ships have obtained floating oil storage leases in Singapore, West Africa and the Mediterranean. Although it is difficult to speculate on why tenants are still chartering ships for floating storage, it is clear that this provides more support for the large tanker market.