Tuesday, January 20, 2009 12:54:55 AM
fyi...Morgan Stanley Said to Cancel Tanker for Oil Storage
Tuesday, 20 January 2009
Morgan Stanley scrapped a deal to hire a supertanker for storing crude oil in the Gulf of Mexico, two people familiar with the situation said. Traders for the bank canceled the booking today, the people said, declining to say why or be identified because the information is private. Bookings need to meet various conditions before they are binding. Carlos Melville, a London-based spokesman for Morgan Stanley, declined to comment. Banks and commodity traders are seeking new ways to make money after the Standard & Poor’s 500 Index fell by the most since 1937 last year and crude oil prices dropped more than $100 a barrel from their peak. Companies including Royal Dutch Shell Plc, Koch Industries Inc. and BP Plc are keeping enough crude at sea to supply the world for almost a day.
Frontline Ltd., the world’s biggest owner of supertankers, said Jan. 14 about 80 million barrels of crude oil are being stored in tankers, the most in 20 years.
Morgan Stanley had earlier agreed to pay $68,000 a day to rent the 2 million-barrel carrier Argenta, according to reports from Athens-based Optima Shipbrokers and Paris-based Barry Rogliano Salles. That works out at $1.02 a barrel a month for a 2 million-barrel consignment.
Benchmark U.S. oil futures are trading at an average of about $3.59 more than the previous month between February and June. For Brent, a benchmark European grade, the difference between the March contract and that for June averages about $1.64 a barrel a month.
The so-called contango pricing structure in oil has been caused by excess supply as demand slows and speculation that output cuts by the Organization of Petroleum Exporting Countries will reduce the glut later this year.
Phibro LLC, Citigroup’s commodities trading unit, has the 1 million-barrel carrier Ice Transporter stationed off north Scotland. Shell, Europe’s largest oil company, booked at least two supertankers.
Source: Alaric Nightingale, Bloomberg
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=32815&Itemid=79
Tuesday, 20 January 2009
Morgan Stanley scrapped a deal to hire a supertanker for storing crude oil in the Gulf of Mexico, two people familiar with the situation said. Traders for the bank canceled the booking today, the people said, declining to say why or be identified because the information is private. Bookings need to meet various conditions before they are binding. Carlos Melville, a London-based spokesman for Morgan Stanley, declined to comment. Banks and commodity traders are seeking new ways to make money after the Standard & Poor’s 500 Index fell by the most since 1937 last year and crude oil prices dropped more than $100 a barrel from their peak. Companies including Royal Dutch Shell Plc, Koch Industries Inc. and BP Plc are keeping enough crude at sea to supply the world for almost a day. Frontline Ltd., the world’s biggest owner of supertankers, said Jan. 14 about 80 million barrels of crude oil are being stored in tankers, the most in 20 years.
Morgan Stanley had earlier agreed to pay $68,000 a day to rent the 2 million-barrel carrier Argenta, according to reports from Athens-based Optima Shipbrokers and Paris-based Barry Rogliano Salles. That works out at $1.02 a barrel a month for a 2 million-barrel consignment.
Benchmark U.S. oil futures are trading at an average of about $3.59 more than the previous month between February and June. For Brent, a benchmark European grade, the difference between the March contract and that for June averages about $1.64 a barrel a month.
The so-called contango pricing structure in oil has been caused by excess supply as demand slows and speculation that output cuts by the Organization of Petroleum Exporting Countries will reduce the glut later this year.
Phibro LLC, Citigroup’s commodities trading unit, has the 1 million-barrel carrier Ice Transporter stationed off north Scotland. Shell, Europe’s largest oil company, booked at least two supertankers.
Source: Alaric Nightingale, Bloomberg
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=32815&Itemid=79
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