Rates for very large crude carriers (VL- CCs) have exploded over the past two weeks as an overhang of supply for this type of ves- sel - the benchmark for the international oil tanker market - has shrunk as a result of increased demand from China. VLCC prices sank during the summer as a host of floating storage contracts came to an end. The contango in the oil futures market - the price premium for later months over the prompt contract - had narrowed significantly, making it unprof- itable to store oil offshore.
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