Traders likely to store crude in tankers next year

Singapore

GLOBAL oil traders are likely to store crude in tankers next year, as a widening contango makes large-scale storage at sea profitable for the first time since the financial crisis more than five years ago, industry sources said.

Oil prices have plunged nearly 50 per cent since June due to a global supply glut, but the economics for storing crude at sea have mostly remained unfavourable.