OPEC Chief Says Floating Storage Is Shrinking - Bloomberg
Crude oil in floating storage is declining, showing that the market is rebalancing, OPEC Secretary-General Mohammad Barkindo said.
Crude in tankers has fallen by an estimated 40 million barrels this year, according to a transcript of a speech delivered by Barkindo on Monday. The drop has been helped by the return of backwardation — when near-term prices are higher than those in later months, indicating tighter supply.
“This trend will obviously make it unprofitable to continue to store crude,” Barkindo said.