Floating oil storage on VLCCs has declined sharply, to the point where volumes of crude held at sea are at their lowest for more than two-and-a-half years.
The economics of storing oil in large tankers no longer make sense. Alphatanker puts the global level of floating crude storage on a monthly basis at just 24 million barrels.
This is the lowest since January 2015 and “undoubtedly a leading indicator of crude markets tightening and of global stocks drawing [down]”.
