Oil Stored On Tankers Is Up 71% Since April

[IDemo]

Reuters|Jun. 4, 2009, 12:21 PM

The volume of refined fuel stored on ships floating at sea has jumped nearly 71 percent since early April, industry sources said on Thursday.

About 41 million barrels of gas oil and jet fuel were being stored in tankers mostly off Europe's coast, up from around 24 million barrels in April, sources said.

Crude has rallied to a seventh-month high on optimism the economy would soon improve, despite the continued build in storage.

The demand for ships to store fuel has boosted freight rates for the Long Range 2 tankers mostly being used, shipbrokers said. The tankers can hold between 600,000 and 1 million barrels.

"Storage continues to be an option for traders and we see bookings running through at least the end of August, with several of them adding options to extend storage into September," a shipbroker said. U.S. investment bank JPMorgan Chase & Co <JPM.N> has hired a crude supertanker to store gas oil off Malta's coast, a unusal sign traders were looking to take advantage of the weaker crude oil freight rates to store distillates. The ship would have to be cleaned to hold the refined fuel.

http://www.businessinsider.com/oil-stored-on-tankers-is-up-71-since-april-2009-6

Somali pirates must be pissed someone is making them look like amateurs on the high seas..

[sam sarrha]

1. gas is going up 6 cents Every day here in NC

[Kansas Wyatt]

2. It's not a coincidence that TARP Banks want to pay back the government money...

After gas prices rise again.

Funny how right after the oil speculation bubble popped last year, the banks needed to be bailed out all of the sudden.

Yet our alleged representatives and our government does not care enough to ask any questions. Looks like our alleged representatives and our government really are owned by the banks.

[Gold Metal Flake]

3. Three dollar a gallon gas in LA.

Glut in the crude market. Congressional oversight? None.

[progressoid]

5. Relax, the free market will sort it all out.

Just like God intended.

[Historic NY]

4. Its speculation all over again..keep the oil out there until the price is driven up...

there is now a glut in oil but the price is still rising. Hell most on-shore tanks are full to at least 20% more capacity than last year.

http://www.msnbc.msn.com/id/12400801/

[crimsonblue]

6. I'm not at all surprised by this...

the price of oil has never been determined by market forces. For decades, oil companies have artificially inflated the price of petroleum by suppressing supply levels. It'll take $5/gal gas for anybody to care enough to do anything.