contango

Oil Storage At Sea Declines After Ease in Global Lockdowns

  • Global lockdown measures to fight the coronavirus outbreak are eased.
  • A glut of crude oil and products stored in tankers at sea will take months to clear.
  • Recovery in global energy demand has reduced the volume compared with a peak.
  • Crude and refined products went into floating storage after demand collapsed by 30 percent.
  • Unloading of cargoes on the water will take time as some volume remains under time charter contracts.

According to an article published in Reuters and authored by Jonathan...

https://mfame.guru/oil-storage-at-sea-declines-after-ease-in-global-lockdowns/

0.5% Marine Fuel Witnesses a Mixed Market Trend

  • Marine Fuel 0.5% market witnessed mixed sentiment on the first trading day.
  • Singapore Marine Fuel 0.5% swaps curve has progressively slipped deeper into contango.
  • The end-user Marine Fuel 0.5% bunker market remained supported.
  • It is due to a widening contango that led sellers to refrain from offering down to attract buying interest and hold on to oil instead.
  • A supply overhang coupled with lackluster demand has led the differential.
  • Mean of Platts Singapore Marine Fuel 0.5% assessments to dip...

https://mfame.guru/0-5-marine-fuel-witnesses-a-mixed-market-trend/

Euronav’s Contango Opportunity, Can It Benefit from The COVID-19 Situation?

  • Euronav owns both the Europe and Oceania Ultra Large Crude Carriers, which it operates as floating storage.
  • The company also owns 39 VLCCs and 25 Suezmax tankers.
  • Most of the fleet is operated in the spot market and is fixed through Tankers International Pool.
  • The company ended the quarter with more than $295MM on hand and valued the fleet at a net $3,000MM.
  • It reported an average Time Charter Equivalent of $35,700 on its VLCCs and $29,300 on Suezmax tankers.
  • Its base rates of $25,000 per day...

http://mfame.guru/euronavs-contango-opportunity-can-it-benefit-from-the-covid-19-situation/

Crude Oil Held in Sea Storage Hits New Record at 160 Million BBL

  • Traders are storing an estimated record of 160 million barrels of oil on ships.
  • Seek to tackle a glut of stocks created by a slide in global demand from the coronavirus.
  • OPEC and other producers including Russia have agreed with a record cut of 9.7 million barrels per day.
  • Traders rushed to find storage on land and at sea creating the biggest oil glut in history.
  • Smaller tankers were boosting volumes being held at anchor.
  • The crude market is currently trading in what is known as contango.
  • The...

http://mfame.guru/crude-oil-held-in-sea-storage-hits-new-record-at-160-million-bbl/

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