Press Article: Tankers to the rescue again: a solution to storage woes
29 June 2020
The oil industry has been through several cycles since weathering the price collapse of 2014. In 2020, the industry has been hit with two new phenomena almost simultaneously: oversupply (caused by the failure of negotiations between Saudi Arabia and Russia to agree on production cuts) and a demand shock (reflecting the economic impact of the Covid-19 lockdown).
This current crisis in oil prices coupled with the fall in demand has pushed several oil producers, traders and consumers to stock up, leading to a shortage in storage space for oil, not just crude but even clean products such as aviation fuel and gasoline.
Using tankers for the storage of oil in the current climate is one solution, and the club is seeing an increasing number of inquiries where members, both charterers and owners, are seeking guidance for such operations.
Read the full opinion article on the Safety4Sea website here.