Ships are being booked as storage due to speculation: Reuters

Ships are being increasingly demanded for use just as crude oil tank storage by traders anticipating an oil price rebound within a year, Reuters said.

Some 20 ships, with combined total capacity of storing 40 million barrels of crude, have been reserved as traders buy crude oil at low prices hoping to profit in a matter of months, Reuters news agency reported.
“In the past two weeks trading firms including Trafigura, Vitol, Gunvor, Koch and energy company Shell have started booking oil tankers for floating storage for up to 12 months, according to industry sources and freight bookings seen by Reuters,” the agency said.
Ship tankers were last booked only to be used for crude oil storage in 2009.