Global tankers fleet have seen a substantial increase in demand for all type of floating storage, pushing the charter rates to record levels as a result of Crude Oil price reduction.
The OPEC production has increased and reach lower price due and prices have reduced to the global activity situation, reduced by the COVID-19 situation, sending the oil market into significant oversupply.
Crude tanker spot rates are now reaching up to $200,000/day, compared to the 2019 average of $40,000/day. Product tanker spot rates are above $60,000/day, compared to the 2019 average of $19,000/day.
Out of an estimated 400 million bbl in floating (offshore) storage capacity, 100 million bbl is currently utilized. Including available floating capacity, S&P Global Platts estimates 1.1 billion bbl of global oil storage is currently available. This equates to about 60 days of remaining capacity at an oversupply estimate of 18 million b/d during the second quarter as calculated by Martijn Rats, a Morgan Stanley oil strategist.
The floating (offshore) storage will increase in demand as onshore storage are now filling up, due to the low consumtion situation due to the COVID-19. Pushing traders to secure vessel capacity for floating storage.
The OPEC production could decide to reduce the production, meanwhile the global are filling up on shore and offshore.