Outdated supertankers are becoming the storage units of choice for commodity traders looking to take maximum advantage of the new oil price crater, according to a new report by Reuters. Brokers who spoke to Reuters said roughly 10 very large crude carriers (VLCCs) aged between 16 to 20 years have been employed as excess crude storage since the end of last month. Each unit holds 2 million barrels of oil. Thirty other supertankers are parked in Singapore and Malaysia’s Linggi, largely due to a market condition called contango – where oil futures are more expensive than an order for immediate delivery. “I t makes a lot of sense for a trader to pay $16,000-$19,000 per day to take an older VLCC for 30-90 days to store oil,” said a Singapore-based supertanker broker, who chose to remain anonymous. Data released by Kpler, an international commodities trader, shows that total global […]