Tuesday, May 26, 2009

How many oil tankers are storing oil?

Back in January 2009 there were reports of oil tankers being chartered just to store oil. Speculators were guessing the price would go up, and it has. Probably more so due to all this speculation than actual demand.

Oil prices are rising way ahead of reality, way ahead of fundamentals,” said Eugen Weinberg, a senior commodity analyst at Commerzbank AG in Frankfurt. “It would be more reasonable for prices to drop a little and correct to $50 or below.”

And, how many ships are storing oil? I don't know how many, but it's gotta be a bunch.

There’s enough unsold crude stored in offshore tankers to supply the U.S. for a week,

click here for complete article from Bloomberg

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