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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:3,522 Points:606,375 Joined:May 2011	Message Posted: Jul 28, 2012 9:25:22 PM Ignore Ahking Report Abuse perhaps everyone is more energy efficient or perhaps economic activities are falling.
Wanda127 Champion Author Florida Posts:2,499 Points:917,630 Joined:May 2010	Message Posted: Jul 25, 2012 10:15:44 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 2:32:09 PM Ignore Agarre Report Abuse hmmm
mdotson Champion Author Grand Rapids Posts:8,661 Points:1,992,990 Joined:Mar 2004	Message Posted: Jul 25, 2012 2:28:36 PM Ignore mdotson Report Abuse Unintended consequences of sanctions on Iran? Who owns those tankers anyway?
A2J Champion Author Richmond Posts:3,090 Points:605,875 Joined:Aug 2011	Message Posted: Jul 25, 2012 2:23:05 PM Ignore A2J Report Abuse Really
DblChek Champion Author San Antonio Posts:2,345 Points:616,120 Joined:Jul 2008	Message Posted: Jul 25, 2012 2:11:09 PM Ignore DblChek Report Abuse Drill Here. Refine Here. Sell Here. Employ Here.
friday21 Champion Author Toronto Posts:5,371 Points:688,310 Joined:Jul 2010	Message Posted: Jul 25, 2012 1:50:09 PM Ignore friday21 Report Abuse ok
DrCashFlow Champion Author Massachusetts Posts:7,079 Points:1,630,050 Joined:Jun 2008	Message Posted: Jul 25, 2012 1:48:45 PM Ignore DrCashFlow Report Abuse Here come the mothballs and cancelled orders and eliminated dividends
sivart Champion Author Arkansas Posts:18,245 Points:3,073,885 Joined:May 2004	Message Posted: Jul 25, 2012 1:46:49 PM Ignore sivart Report Abuse k
thirty8paces Champion Author Baltimore Posts:4,531 Points:1,109,055 Joined:Sep 2008	Message Posted: Jul 25, 2012 1:44:36 PM Ignore thirty8paces Report Abuse Oh well.
jpgilmor Champion Author Houston Posts:2,175 Points:606,650 Joined:Feb 2011	Message Posted: Jul 25, 2012 1:43:13 PM Ignore jpgilmor Report Abuse Ouch!
The3rd Champion Author Jacksonville Posts:2,876 Points:828,435 Joined:Jul 2004	Message Posted: Jul 25, 2012 1:42:15 PM Ignore The3rd Report Abuse Thought Iran had these all tied up.
ibhenry Champion Author San Diego Posts:1,536 Points:457,945 Joined:Jun 2011	Message Posted: Jul 25, 2012 1:41:13 PM 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 1:39:52 PM 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:4,495 Points:1,370,385 Joined:Mar 2002	Message Posted: Jul 25, 2012 1:39:34 PM 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:1,791 Points:587,950 Joined:May 2011	Message Posted: Jul 25, 2012 1:35:16 PM 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:763,935 Joined:Apr 2010	Message Posted: Jul 25, 2012 1:34:03 PM Ignore mnorthwood13 Report Abuse Ooops...too many people shipping. Lower shipping costs that way though.
Harry813 Champion Author Iowa Posts:3,020 Points:664,790 Joined:Jul 2011	Message Posted: Jul 25, 2012 1:33:07 PM Ignore Harry813 Report Abuse What did they expect?
deaconjones Champion Author Cleveland Posts:2,144 Points:319,380 Joined:May 2006	Message Posted: Jul 25, 2012 1:32:23 PM Ignore deaconjones Report Abuse WHAT THE POINT HERE???
buzzieNY Champion Author Buffalo Posts:2,909 Points:638,480 Joined:Jun 2011	Message Posted: Jul 25, 2012 1:31:14 PM 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:7,437 Points:1,474,870 Joined:Oct 2008	Message Posted: Jul 25, 2012 1:30:47 PM 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:1,868 Points:1,018,035 Joined:Dec 2008	Message Posted: Jul 25, 2012 1:28:06 PM Ignore WTLITNG Report Abuse Until all heck breaks out in Iran.
fishgaro Champion Author St. Louis Posts:1,509 Points:347,835 Joined:Apr 2012	Message Posted: Jul 25, 2012 1:25:45 PM Ignore fishgaro Report Abuse ?? OK ??
GryphonX Champion Author Nevada Posts:6,115 Points:1,591,025 Joined:Nov 2007	Message Posted: Jul 25, 2012 1:23:45 PM 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 1:23:03 PM Ignore grammamNV Report Abuse ok then
Elaine4411 Champion Author Pennsylvania Posts:1,663 Points:466,265 Joined:Dec 2011	Message Posted: Jul 25, 2012 1:17:57 PM Ignore Elaine4411 Report Abuse ok
Teddy95 Champion Author Dayton Posts:41,160 Points:2,699,050 Joined:Oct 2005	Message Posted: Jul 25, 2012 1:16:58 PM Ignore Teddy95 Report Abuse Hmmm...
soakmonkey Champion Author Nevada Posts:1,448 Points:1,006,600 Joined:Feb 2007	Message Posted: Jul 25, 2012 1:16:20 PM 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 1:15:43 PM Ignore BigBob12345 Report Abuse The law of supply & demand finally applies to oil!!!!!!!!!!!!!!
BigDenOH Champion Author Cincinnati Posts:2,364 Points:581,275 Joined:May 2011	Message Posted: Jul 25, 2012 1:14:46 PM Ignore BigDenOH Report Abuse And?
mrinmoyd Champion Author Illinois Posts:1,095 Points:364,525 Joined:Jun 2011	Message Posted: Jul 25, 2012 1:14:04 PM Ignore mrinmoyd Report Abuse ok
DYSKYPILOT Champion Author Fort Worth Posts:2,917 Points:628,630 Joined:Mar 2006	Message Posted: Jul 25, 2012 1:13:43 PM 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 1:12:12 PM Ignore eddyp94 Report Abuse And that's a good thing...
divebomber Champion Author Nebraska Posts:6,093 Points:1,815,200 Joined:Jun 2007	Message Posted: Jul 25, 2012 1:11:28 PM Ignore divebomber Report Abuse GOOD!
firechief Champion Author New York Posts:3,456 Points:2,068,325 Joined:Mar 2004	Message Posted: Jul 25, 2012 1:10:49 PM Ignore firechief Report Abuse um OK
HawaiianGuy Champion Author Idaho Posts:9,543 Points:3,082,625 Joined:May 2003	Message Posted: Jul 25, 2012 1:09:22 PM 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 1:07:53 PM 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:122,790 Joined:Sep 2005	Message Posted: Jul 25, 2012 1:07:17 PM Ignore tommystar Report Abuse And we are supposed to feel sorry for these guys???
satrn38mpg Champion Author Raleigh Posts:5,082 Points:1,055,965 Joined:Sep 2009	Message Posted: Jul 25, 2012 1:06:03 PM Ignore satrn38mpg Report Abuse ok
Go_E85 Champion Author Orange County Posts:2,234 Points:174,805 Joined:Dec 2007	Message Posted: Jul 25, 2012 1:05:17 PM Ignore Go_E85 Report Abuse ...
44Irish Champion Author Ontario Posts:1,490 Points:521,110 Joined:Mar 2007	Message Posted: Jul 25, 2012 1:00:56 PM Ignore 44Irish Report Abuse Zzzzzzz............
sickhp Champion Author San Antonio Posts:1,389 Points:519,830 Joined:Sep 2011	Message Posted: Jul 25, 2012 12:59:35 PM Ignore sickhp Report Abuse Cool.
arnerator Champion Author Seattle Posts:8,199 Points:1,620,275 Joined:Sep 2008	Message Posted: Jul 25, 2012 12:58:43 PM 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:403,315 Joined:Mar 2011	Message Posted: Jul 25, 2012 12:57:25 PM Ignore dondk Report Abuse ok
TheHermit Champion Author Maine Posts:3,404 Points:128,230 Joined:May 2012	Message Posted: Jul 25, 2012 12:56:44 PM 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 12:56:02 PM Ignore Rehorsehay Report Abuse Same stuff different day!
HailstormCA Champion Author San Diego Posts:7,865 Points:1,473,970 Joined:Nov 2008	Message Posted: Jul 25, 2012 12:54:05 PM Ignore HailstormCA Report Abuse Okee, Dookee!
hptd All-Star Author North Carolina Posts:904 Points:500,945 Joined:May 2007	Message Posted: Jul 25, 2012 12:52:08 PM Ignore hptd Report Abuse ok
Taxrefugee Champion Author Arizona Posts:1,417 Points:389,170 Joined:Jan 2012	Message Posted: Jul 25, 2012 12:50:33 PM Ignore Taxrefugee Report Abuse Even the middle eastern shieks are not immune from a global economic slowdown.
BigHorne1 Champion Author Missouri Posts:1,512 Points:299,700 Joined:Jul 2012	Message Posted: Jul 25, 2012 12:50:14 PM Ignore BigHorne1 Report Abuse Hopefully with this over supply, we will start seeing some real relief at the pumps.