The number of supertankers being used to store crude and oil products shrank by about a third since March, according to ICAP Shipping, a unit of ICAP plc, the world's biggest broker of deals between banks.
About 30 very large crude carriers (VLCCs) are in use now, compared with about 45 late in the first quarter, shipping analyst Simon Newman said on Wednesday in an interview at a conference in London.
A supertanker can hold about two million barrels of crude, more than France consumes every day.
The amount of oil stored at sea climbed to the highest in at least two decades, Frontline Ltd, the biggest supertanker operator, said in January.
Traders sought to profit from contango, where longer-dated contracts are more expensive than near-term supply. The spread is profitable so long as it exceeds storage and finance costs.
The number of supertankers 'has fallen because the contango has narrowed and some of the ships have finished their time charter', Mr Newman said.
Rates on the industry's benchmark route, based on Saudi Arabian shipments to Japan, have more than doubled since the beginning of May.
The route rose 2.3 per cent to 54.66 Worldscale points on Wednesday, according to the Baltic Exchange in London. Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes.
ICAP Shipping arranges oil-tanker rentals and also has a commodities ship-broking team.
About 30 very large crude carriers (VLCCs) are in use now, compared with about 45 late in the first quarter, shipping analyst Simon Newman said on Wednesday in an interview at a conference in London.
A supertanker can hold about two million barrels of crude, more than France consumes every day.
The amount of oil stored at sea climbed to the highest in at least two decades, Frontline Ltd, the biggest supertanker operator, said in January.
Traders sought to profit from contango, where longer-dated contracts are more expensive than near-term supply. The spread is profitable so long as it exceeds storage and finance costs.
The number of supertankers 'has fallen because the contango has narrowed and some of the ships have finished their time charter', Mr Newman said.
Rates on the industry's benchmark route, based on Saudi Arabian shipments to Japan, have more than doubled since the beginning of May.
The route rose 2.3 per cent to 54.66 Worldscale points on Wednesday, according to the Baltic Exchange in London. Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes.
ICAP Shipping arranges oil-tanker rentals and also has a commodities ship-broking team.