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Oil-Tanker Glut Seen Rising With Returns Near Four-Year Low

Bloomberg Businessweek -- A glut of the biggest oil tankers in the Persian Gulf expanded, a Bloomberg survey showed, adding to pressure on owners facing returns near the lowest level in at least four years.

There are 20 percent more very large crude carriers available for hire over the next 30 days than there are likely cargoes, according to a Bloomberg News survey of six shipbrokers and owners today. That’s an increase of 1 percentage point from last week and up 5 points compared with a year earlier, previous survey data show.

VLCCs on the industry’s benchmark Saudi Arabia-to-Japan route are losing $5,284 a day, according to the Baltic Exchange in London. Returns have stayed negative for 14 sessions. Crude demand and export volumes have slowed as buyers delay purchases, according to Samuel Ciszuk, an oil ...

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Submitted Jul 25, 2012 By: BurntOrange

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Ahking Champion Author Orange County Posts:3,492 Points:600,445 Joined:May 2011	Message Posted: Jul 28, 2012 7:25:22 PM Ignore Ahking Report Abuse perhaps everyone is more energy efficient or perhaps economic activities are falling.
Wanda127 Champion Author Florida Posts:2,479 Points:911,980 Joined:May 2010	Message Posted: Jul 25, 2012 8:15:44 PM Ignore Wanda127 Report Abuse You're absolutely correct DblChek.
Agarre Champion Author Richmond Posts:1,335 Points:263,785 Joined:Feb 2012	Message Posted: Jul 25, 2012 12:32:09 PM Ignore Agarre Report Abuse hmmm
mdotson Champion Author Grand Rapids Posts:8,632 Points:1,987,265 Joined:Mar 2004	Message Posted: Jul 25, 2012 12:28:36 PM Ignore mdotson Report Abuse Unintended consequences of sanctions on Iran? Who owns those tankers anyway?
A2J Champion Author Richmond Posts:3,065 Points:600,900 Joined:Aug 2011	Message Posted: Jul 25, 2012 12:23:05 PM Ignore A2J Report Abuse Really
DblChek Champion Author San Antonio Posts:2,341 Points:613,390 Joined:Jul 2008	Message Posted: Jul 25, 2012 12:11:09 PM Ignore DblChek Report Abuse Drill Here. Refine Here. Sell Here. Employ Here.
friday21 Champion Author Toronto Posts:5,312 Points:681,385 Joined:Jul 2010	Message Posted: Jul 25, 2012 11:50:09 AM Ignore friday21 Report Abuse ok
DrCashFlow Champion Author Massachusetts Posts:7,059 Points:1,624,400 Joined:Jun 2008	Message Posted: Jul 25, 2012 11:48:45 AM Ignore DrCashFlow Report Abuse Here come the mothballs and cancelled orders and eliminated dividends
sivart Champion Author Arkansas Posts:18,200 Points:3,066,960 Joined:May 2004	Message Posted: Jul 25, 2012 11:46:49 AM Ignore sivart Report Abuse k
thirty8paces Champion Author Baltimore Posts:4,503 Points:1,103,145 Joined:Sep 2008	Message Posted: Jul 25, 2012 11:44:36 AM Ignore thirty8paces Report Abuse Oh well.
jpgilmor Champion Author Houston Posts:2,151 Points:600,820 Joined:Feb 2011	Message Posted: Jul 25, 2012 11:43:13 AM Ignore jpgilmor Report Abuse Ouch!
The3rd Champion Author Jacksonville Posts:2,851 Points:826,560 Joined:Jul 2004	Message Posted: Jul 25, 2012 11:42:15 AM Ignore The3rd Report Abuse Thought Iran had these all tied up.
ibhenry Champion Author San Diego Posts:1,536 Points:456,445 Joined:Jun 2011	Message Posted: Jul 25, 2012 11:41:13 AM Ignore ibhenry Report Abuse HA! I found humor in this.....
19sheldon43 Champion Author Los Angeles Posts:3,979 Points:843,010 Joined:Jul 2009	Message Posted: Jul 25, 2012 11:39:52 AM Ignore 19sheldon43 Report Abuse Maybe they should look for something more lucrative to ship. Oil is so last year(sarcasm)
gasper Champion Author Edmonton Posts:4,480 Points:1,367,335 Joined:Mar 2002	Message Posted: Jul 25, 2012 11:39:34 AM Ignore gasper Report Abuse That is not the whole story on this article more undercover investigation is needed here.
LtRTH Champion Author St. Louis Posts:1,758 Points:581,840 Joined:May 2011	Message Posted: Jul 25, 2012 11:35:16 AM Ignore LtRTH Report Abuse Now I guess because the ship brokers are losing money due to their vlcc's sitting idle, oil will go up to cover their loses.
mnorthwood13 Champion Author Michigan Posts:1,385 Points:761,835 Joined:Apr 2010	Message Posted: Jul 25, 2012 11:34:03 AM Ignore mnorthwood13 Report Abuse Ooops...too many people shipping. Lower shipping costs that way though.
Harry813 Champion Author Iowa Posts:2,990 Points:658,940 Joined:Jul 2011	Message Posted: Jul 25, 2012 11:33:07 AM Ignore Harry813 Report Abuse What did they expect?
deaconjones Champion Author Cleveland Posts:2,119 Points:318,255 Joined:May 2006	Message Posted: Jul 25, 2012 11:32:23 AM Ignore deaconjones Report Abuse WHAT THE POINT HERE???
buzzieNY Champion Author Buffalo Posts:2,877 Points:632,530 Joined:Jun 2011	Message Posted: Jul 25, 2012 11:31:14 AM Ignore buzzieNY Report Abuse With the price of gas consumers aren't buying other products. Tankers are coming back empty because of lack of demand.
NorthglennBill Champion Author Denver Posts:7,417 Points:1,469,370 Joined:Oct 2008	Message Posted: Jul 25, 2012 11:30:47 AM Ignore NorthglennBill Report Abuse Doesn't sound like the speculators are buying the oil, pumping it onto the tankers and letting them sit waiting for the price to go up anymore. Maybe they got burnt real bad the last time they did that.
WTLITNG Champion Author Virginia Posts:1,834 Points:1,011,945 Joined:Dec 2008	Message Posted: Jul 25, 2012 11:28:06 AM Ignore WTLITNG Report Abuse Until all heck breaks out in Iran.
fishgaro Champion Author St. Louis Posts:1,479 Points:341,985 Joined:Apr 2012	Message Posted: Jul 25, 2012 11:25:45 AM Ignore fishgaro Report Abuse ?? OK ??
GryphonX Champion Author Nevada Posts:6,095 Points:1,584,775 Joined:Nov 2007	Message Posted: Jul 25, 2012 11:23:45 AM Ignore GryphonX Report Abuse This doesn't make any sense ...
grammamNV Champion Author Nevada Posts:2,335 Points:372,425 Joined:Mar 2011	Message Posted: Jul 25, 2012 11:23:03 AM Ignore grammamNV Report Abuse ok then
Elaine4411 Champion Author Pennsylvania Posts:1,633 Points:460,315 Joined:Dec 2011	Message Posted: Jul 25, 2012 11:17:57 AM Ignore Elaine4411 Report Abuse ok
Teddy95 Champion Author Dayton Posts:41,130 Points:2,693,200 Joined:Oct 2005	Message Posted: Jul 25, 2012 11:16:58 AM Ignore Teddy95 Report Abuse Hmmm...
soakmonkey Champion Author Nevada Posts:1,448 Points:1,006,000 Joined:Feb 2007	Message Posted: Jul 25, 2012 11:16:20 AM Ignore soakmonkey Report Abuse Time to sell VLCCs?
BigBob12345 Champion Author Gasbuddy Posts:1,521 Points:304,730 Joined:Aug 2011	Message Posted: Jul 25, 2012 11:15:43 AM Ignore BigBob12345 Report Abuse The law of supply & demand finally applies to oil!!!!!!!!!!!!!!
BigDenOH Champion Author Cincinnati Posts:2,339 Points:576,400 Joined:May 2011	Message Posted: Jul 25, 2012 11:14:46 AM Ignore BigDenOH Report Abuse And?
mrinmoyd Champion Author Illinois Posts:1,095 Points:364,525 Joined:Jun 2011	Message Posted: Jul 25, 2012 11:14:04 AM Ignore mrinmoyd Report Abuse ok
DYSKYPILOT Champion Author Fort Worth Posts:2,887 Points:622,780 Joined:Mar 2006	Message Posted: Jul 25, 2012 11:13:43 AM Ignore DYSKYPILOT Report Abuse Very good.
eddyp94 Champion Author Ontario Posts:8,163 Points:1,660,835 Joined:Mar 2008	Message Posted: Jul 25, 2012 11:12:12 AM Ignore eddyp94 Report Abuse And that's a good thing...
divebomber Champion Author Nebraska Posts:6,063 Points:1,809,350 Joined:Jun 2007	Message Posted: Jul 25, 2012 11:11:28 AM Ignore divebomber Report Abuse GOOD!
firechief Champion Author New York Posts:3,426 Points:2,063,125 Joined:Mar 2004	Message Posted: Jul 25, 2012 11:10:49 AM Ignore firechief Report Abuse um OK
HawaiianGuy Champion Author Idaho Posts:9,511 Points:3,075,985 Joined:May 2003	Message Posted: Jul 25, 2012 11:09:22 AM Ignore HawaiianGuy Report Abuse Hopefully, this will add up to savings to consumers at the pump.
Connie11 Veteran Author Arizona Posts:262 Points:332,675 Joined:Apr 2009	Message Posted: Jul 25, 2012 11:07:53 AM Ignore Connie11 Report Abuse With the price of gas consumers aren't buying other products. Tankers are coming back empty because of lack of demand.
tommystar Rookie Author Phoenix Posts:62 Points:122,290 Joined:Sep 2005	Message Posted: Jul 25, 2012 11:07:17 AM Ignore tommystar Report Abuse And we are supposed to feel sorry for these guys???
satrn38mpg Champion Author Raleigh Posts:5,052 Points:1,050,015 Joined:Sep 2009	Message Posted: Jul 25, 2012 11:06:03 AM Ignore satrn38mpg Report Abuse ok
Go_E85 Champion Author Orange County Posts:2,209 Points:173,805 Joined:Dec 2007	Message Posted: Jul 25, 2012 11:05:17 AM Ignore Go_E85 Report Abuse ...
44Irish Champion Author Ontario Posts:1,490 Points:520,960 Joined:Mar 2007	Message Posted: Jul 25, 2012 11:00:56 AM Ignore 44Irish Report Abuse Zzzzzzz............
sickhp Champion Author San Antonio Posts:1,359 Points:513,880 Joined:Sep 2011	Message Posted: Jul 25, 2012 10:59:35 AM Ignore sickhp Report Abuse Cool.
arnerator Champion Author Seattle Posts:8,164 Points:1,614,140 Joined:Sep 2008	Message Posted: Jul 25, 2012 10:58:43 AM Ignore arnerator Report Abuse If Iran ever tries to close the straight, they will be glad those tankers are around.
dondk Champion Author Pennsylvania Posts:1,354 Points:402,565 Joined:Mar 2011	Message Posted: Jul 25, 2012 10:57:25 AM Ignore dondk Report Abuse ok
TheHermit Champion Author Maine Posts:3,404 Points:127,030 Joined:May 2012	Message Posted: Jul 25, 2012 10:56:44 AM Ignore TheHermit Report Abuse and the winner is........
Rehorsehay All-Star Author California Posts:871 Points:45,925 Joined:Feb 2012	Message Posted: Jul 25, 2012 10:56:02 AM Ignore Rehorsehay Report Abuse Same stuff different day!
HailstormCA Champion Author San Diego Posts:7,835 Points:1,468,020 Joined:Nov 2008	Message Posted: Jul 25, 2012 10:54:05 AM Ignore HailstormCA Report Abuse Okee, Dookee!
hptd All-Star Author North Carolina Posts:871 Points:495,220 Joined:May 2007	Message Posted: Jul 25, 2012 10:52:08 AM Ignore hptd Report Abuse ok
Taxrefugee Champion Author Arizona Posts:1,382 Points:383,865 Joined:Jan 2012	Message Posted: Jul 25, 2012 10:50:33 AM Ignore Taxrefugee Report Abuse Even the middle eastern shieks are not immune from a global economic slowdown.
BigHorne1 Champion Author Missouri Posts:1,482 Points:293,850 Joined:Jul 2012	Message Posted: Jul 25, 2012 10:50:14 AM Ignore BigHorne1 Report Abuse Hopefully with this over supply, we will start seeing some real relief at the pumps.