The Oil Industry’s Glut Has a Bright Spot: Tanker Storage

The Oil Industry’s Glut Has a Bright Spot: Tanker Storage

The Oil Industry's Glut Has a Bright Spot: Tanker Storage. Saudi Arabia and its allies have ramped up output , as part of a price war with Russia.. The tanker industry is having its best spell in at least a decade, analysts say.. Most of Euronav's ships operate at so-called spot rates, essentially whatever they negotiate with customers, which vary from day to day.. Oil companies have been chartering Euronav's very large crude carriers, or V.L.C.C.s - tankers longer than three football fields - for $150,000 to $200,000 a day, Mr. de Stoop said, depending on where they are going.. After Saudi Arabia and Russia kicked off their price war in early March, rates soared well over $200,000 a day as the Saudis chartered as many as 18 tankers.. Mr. Booth also said that in the same period the total amount of crude being carried on ships - what the industry calls oil on water - increased by about 100 million barrels to 1.2 billion barrels.. While Saudi Arabia and Russia agreed on April 12 to end their price war and cut 9.7 million barrels a day in production, or about 10 percent of world output, by May 1, the