by Ole Petter Skonnord (Reuters) Tanker company Frontline, managed by billionaire financier John Fredriksen, anticipates an expanding variety of supertankers to be utilized for keeping crude in expectancy of greater oil costs, its president informed Reuters on Friday.

While none of Frontline’s very own vessels are presently utilized for this function, independent shipbrokers approximate that around 10 of the globe’s huge unrefined providers (VLCCs) have actually lately been gotten for oil storage space.

“It sounds correct, and the number is rising,” Frontline Chief Executive Officer Robert Macleod stated.

“It’s always an option,” he included.

Frontline has 20 VLCCs, each of wich can lug about 2 million barrels of oil.

VLCC area prices are presently listed below Frontline’s cash money break-even degree of $22,300 daily, trading at simply $15,000-20,000 and also making storage space reasonably economical for those that assume oil costs will certainly increase.

Later in the year, the price of leasing ships will likely increase nonetheless as the need for crude grabs.

“We expect a seasonal improvement in third quarter. Atlantic volumes to Asia are expected to rise, and including seasonal factors we expect the market to improve,” Macleod stated.

(Reporting by Ole Petter Skonnord, editing and enhancing by Terje Solsvik)
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