Tanker firm predicts 100M barrels of oil stored on ships
Mar. 26, 2020
About: International Seaways, Inc. (INSW)|
By: Carl Surran, SA News Editor
The oversupplied market may drive as much as 100M barrels of oil into floating storage "and probably more," International Seaways (INSW +6.3%) CEO Lois Zabrocky tells Bloomberg.
"This is a once-in-a-generation type of event," Zabrocky says, noting charterers are starting to book vessels with storage options for periods of more than a year.
The company has received inquiries about floating storage for both crude and oil products, covering many types of vessels, from VLCCs to Suezmaxes and smaller ships too, the CEO says.
IHS Markit says the world could run out of places to store oil in as few as three months, as supply may exceed demand by 12.4M bbl/day in Q2.
Current rates of supply and demand mean inventories will rise by 1.8B barrels during H1, IHS Markit says; with only 1.6B barrels of storage capacity still available, producers would be forced to cut production further because by June there would be no place left to store the unwanted crude.
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