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Traders book oil tankers to store 40m barrels at sea: sources

[LONDON] Oil traders have booked up to 20 tankers to store an estimated 40 million barrels of crude at sea, rising from 25 million barrels last week, as they seek to snap up a glut of global stocks, shipping and oil market sources said.

The more than 50 per cent fall in spot prices enables traders to make money by storing the crude for delivery months down the line, when prices are expected to recover.

The sources said the volume of oil earmarked for floating storage had risen in recent days. Some of the tankers could nonetheless still be used for conventional oil transportation.