A widening oil price contango has prompted Clarksons Platou Securities to predict VLCC rates have reached their lowest point and could now head up again.
Frode Morkedal and Omar Nokta, analysts at the investment banking arm of broker Clarksons, said the three-month Brent spread is $1.35 per barrel.
"Overall we believe the contango is still not wide enough to entice new floating storage, but this could quickly change should the contango widen further," they added.
