A growing number of VLCCs are being booked to hold oil until prices recover. File Image / Pixabay
The number of VLCC tankers booked since March with the option to store oil has reached 71, according to price reporting agency Argus Media, as the current oversupply in crude markets fills land-based storage.
The 71 VLCCs are in addition to at least 31 Suezmaxes and 23 Aframaxes booked on similar terms, Argus reported Friday.
Beyond its significance for the crude oil market, this also means that up to 10% of the global VLCC fleet may soon have significantly reduced bunker consumption while they serve as floating storage.
The 71 VLCCs have been booked at an average freight rate of $77,000 per day, Argus said.