The ship, with cargo on board, left Kharg Island, Iran’s biggest crude-export terminal, in early February, and reached its present location on Feb. 24 or one month ago. Elektrans, the ship’s joint owner, said Wednesday that the tanker’s cargo is probably destined for buyer in Mediterranean but didn’t know which because vessel is on long-term charter to another company.
In other words, the ship is hoping that prices rebound high enough to where a buyer will be found. For now, there is no buyer, and the bigger the contango drop, the less profitable such storage will be in the future, forcing companies to unload tanker cargos and to flood the market with tens of millions of currently “inert” inventory.
This article is brought to you courtesy of Tyler Durden From Zero Hedge.