Photo: U. S Coast Guard | Reuters
Bloomberg called home lords of the world prices for oil. They will soon be traders to store the fuel in standing off the coast worldwide tankers.
The publication indicates that in recent weeks many tankers full of oil moored off the coast of the United States, China, European countries and South Africa. The latter is attractive to traders due to storage of oil in there safer than in other African countries where the incidence of piracy. The location of the country makes it relatively promptly deliver the oil to where you need it at the moment, for example, in Asia or Europe.
Mostly to the coast of Saldanha Bay in South Africa to deliver oil produced in Nigeria, Angola and the Congo. More tankers are currently stranded at the North-West coast of Africa, near the entrance to the Mediterranean sea. Just in courts around the world have accumulated about 20 percent of global daily oil consumption, and this is enough to manipulate prices by increasing or decreasing the sentence as necessary.
The publication notes that ordinarily the traders and mining companies prefer tank storage on land, but now almost all of them are overcrowded, and higher costs for storage in tankers compensated by the possibility of rapid delivery to the consumer.
Most traders now use the traditional energy market the effect of contango — when futures contracts with more distant delivery dates are more expensive. Having the physical volume of fuel they sell futures on it at a higher price. If the conjuncture has, they can buy back the contracts back shortly before their expiration, in order to make a difference and resell at a higher price to an even more distant time.
The glut of oil in the world leads to a low price for it. In the interests of the market would be a gradual reduction in reserves. But some traders, whom the publication calls a sly, ready to act solely for their own benefit and to sell the oil where it is needed at a particular point in time. As soon as the demand is recovering due to the lifting of medical restrictions around the world, such situations will occur more often.
In this regard, the authors predict that the variability and unpredictability of world oil prices will remain for an indefinite period, and analysts ‘ forecasts about the recovery of the quotations will be reckless.
Video, photo All from Russia.