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Part of it might be that tankers have been parked near the canal because of low oil prices. Some of them even skipped the canals (Panama and Suez) altogether t
by protomyth 10y ago
Part of it might be that tankers have been parked near the canal because of low oil prices. Some of them even skipped the canals (Panama and Suez) altogether to lengthen their route hoping for oil to go up.
- toomuchtodo 10y ago> Some of them even skipped the canals (Panama and Suez) altogether to lengthen their route hoping for oil to go up. No. It was because crude oil is so cheap, its cheaper to burn the oil than pay the Suez transit fees.
- protomyth 10y agoTrue, but tankers were also being parked all over.
- toomuchtodo 10y agoYeah, but not at transit points, at offloading points (notably Houston/Galveston).
- protomyth 10y agoReally, I thought I saw an article on it because of some weird scheduling, might be way off, they did blend together at the time.
- toomuchtodo 10y agohttp://gcaptain.com/oil-tanker-backlog-in-u-s-gulf-seen-as-new-symbol-of-glut/ http://gcaptain.com/oil-tanker-backlog-in-u-s-gulf-seen-as-n...
- protomyth 10y agoWow, the down voters are going a bit wild - why is toomuchtodo being down voted?
- rando18423 10y agoWrong. When traders are using vessels to capture the congango spread, they park the vessels near a demand center, not in the middle of the route. Furthermore, unless you own the vessel or have it on a time charter, somebody else has claim to that vessel after you, and if you take too long the demurrage fines quickly outgrow the price spreads you're hoping to profit on.