Oil price slump spurs tankers to make longer voyages
Rout has triggered what traders call contango, a price pattern that lessens the need for speedy oil deliveries
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SLUMPING oil prices are spurring 6,400-kilometre diversions of tankers filled with diesel and jet fuel as the price of ship fuel plunges, opening up trading opportunities.
At least five tankers will deliver refined products to European ports in August and September, sailing around South Africa rather than using the normal shortcut through Egypt's Suez Canal, ship tracking data shows. The falling cost of fuel oil, used to power ships, has made longer voyages viable at a time when there are advantages for traders to keep cargoes at sea. Long-distance shipments between continents have increased this year, according to Torm A/S, the world's second-biggest publicly traded product-tanker owner.
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