<article><p class="lead">At least four very large crude carriers (VLCC) have been booked as floating storage following the <a href="https://direct.argusmedia.com/newsandanalysis/article/2085104">oil market's deepened contango</a> and all for a period up to six months.</p><p>Shell booked the <i>Sea Lion</i> and the <i>Sea Pearl</i> from Shipowner Angelef, St Shipping booked the <i>Europe</i> from Euronav and an unnamed charterer took the <i>Ridgebury Progress</i> for a period charter to be used as floating storage. The average term of the deals was at five months with the average price just over $40,000/d. But more floating storage deals in the short term are less likely as the current fixing "rush" is holding strong for a second session. Spot rates are increasing with every consecutive fixture and shipowners are reluctant to commit their vessels at a period charter when spot earnings are considerably higher.</p><p>As a <a href="https://direct.argusmedia.com/newsandanalysis/article/2085708">VLCC chartering</a> "rush" continues for a second session, spot rates are on track to reach a five month high at today's close. Before noon fixtures from the Mideast Gulf to east Asia were reported at WS147 or $30/t levels, and the highest since the early October spike. At the time, spot earnings were estimated at around $100,000/d, with the Mideast Gulf to east Asia — depending on the discharge destination — reaching up to $127,000/d for a non-scrubber fitted vessel. The "rally" is expected to continue further during the week with <a href="https://direct.argusmedia.com/newsandanalysis/article/2085877">Abu Dhabi's state-owned Adnoc joining in and increasing its crude output for April</a>, introducing an extra 1mn b/d.</p><p class="bylines">By Nikos Kokolinakis</p></article>
