We will discuss this report and other developments in oil markets in tomorrow’s podcast… But here is one nugget from today’s release of the EIA’s Short Term Energy Outlook:
“Floating storage volumes have already begun declining as global supply and demand balances return to equilibrium. After reaching 181 million barrels in the week of May 15, floating volumes fell to 178 million barrels on May 22 and 164 million barrels on May 29. Tanker rates have also declined, which is often a leading indicator of floating storage volumes because charter rates are set in advance of physical loading. Although tanker rates rose in March and remained elevated throughout most of April, rates declined sharply in late April. The benchmark rate to ship crude oil on the Arabian Gulf to Japan route aboard a Very Large Crude Carrier (VLCC) declined from $6.48/b on April 22 to $1.97/b on June 4.”
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