Frontline Says Floating Oil Storage May be Close to Peak
The volume of crude stored on oil tanker vessels is currently estimated to around 200 million barrels and may be close to a peak, tanker group Frontline said in its first quarter results presentation on Wednesday.
"We are likely to see an unwind of floating storage in 2H 2020," it added.
Even with output cuts from top producing nations, decreased oil demand caused by the coronavirus pandemic has created a major oil glut and a sharp uptick in floating oil storage on board tankers at sea.
Hugo De Stoop, chief executive of rival shipping group Euronav, recenty said floating storage was "more likely to increase than to decrease".
"At the moment we continue to be in a world that is oversupplied with oil and the oil has to go somewhere and the land storage is full," he told Reuters.