4 ms·
If the oil tanker can hold 2,000,000 barrels at -$35/ barrel you are being paid $70 million to store the oil for a few months... Of course, the next question i
by ldoughty 7y ago
If the oil tanker can hold 2,000,000 barrels at -$35/ barrel you are being paid $70 million to store the oil for a few months...
Of course, the next question is who pays for transport to/from the tanker, labor, dock fees, employees in ship (unless you can simply "park" it for a fee)
- foota 7y agoYeah, I was wondering. I think if someone had the experience needed to put this together quickly it would likely be profitable. It looks like most tankers are ~200,000 metric tons which at ~8 barrels per metric ton is roughly 1.6 million barrels. You also really only need to store it for a month, I think June futures are around $20 still, and so it's a diff of ~$60/barrel.
- BloominOnion 7y agoRan some basic figures for 6 months: Barrels 2000000 lease cost / day $350,000.00 Barrel cost -$37 Take delivery profit $74,000,000.00 After 180 days storage $63,000,000.00 Sell/barrel $20 Net $51,000,000.00
- bluGill 7y agoBetter yet you can play hedging games with your oil. Sell a june delivery contract to lock in your profit now. If June prices collapse buy a contract to take delivery in June and sell one to deliver in July. You never have to get to Port until prices are high enough to be worth actually making a delivery, and you make money every month. Details of the above are important to get just right. It works out if you get all the details right.