Energy Metro Desk: Floating Product Storage

“According to some new research by Poten & Partners, the floating crude storage trade may have run its course. But another strategy may be emerging, this time, clean stuff. Poten says that throughout 2009, crude oil stored on tankers fell from levels of more than 80 million barrels to current levels of about 25 million barrels. However, clean product floating storage reached its peak in December 2009, when 127 vessels were reported for such employment, for a total of about 80 million barrels. ‘Today, about 57 million barrels of clean refined products ply waters worldwide waiting to find a home in the market…’ Poten says that although the spread between spot and future prices for distillate has narrowed significantly, opportunities will likely persist for traders and ship owners interested in storage plays.”