The amount of oil products in floating storage has fallen by 12 million barrels to 74 million at the end of February from January, the International Energy Agency said. Crude oil held at sea also fell 7 million barrels to 52 million in the same period, it said.
"Floating storage is coming down, and there are fledgling signs of resurgent industrial activity, which could even put a floor under moribund OECD oil demand," said the IEA. World oil demand will be 70,000 barrels per day higher than previously expected at 86.57 million bpd in 2010, the IEA said.
The draws were prompted by a rise in spot crude and gas oil contracts relative to futures due to stronger demand, the agency said. This is reducing the appeal of a buy-and-hold storage play.
Most of the draws occurred in Europe and Asia, the IEA said. European floating storage volumes fell 3 million barrels to 54 million by the end of February, it said.
"Floating storage is coming down, and there are fledgling signs of resurgent industrial activity, which could even put a floor under moribund OECD oil demand," said the IEA. World oil demand will be 70,000 barrels per day higher than previously expected at 86.57 million bpd in 2010, the IEA said.
The draws were prompted by a rise in spot crude and gas oil contracts relative to futures due to stronger demand, the agency said. This is reducing the appeal of a buy-and-hold storage play.
Most of the draws occurred in Europe and Asia, the IEA said. European floating storage volumes fell 3 million barrels to 54 million by the end of February, it said.