Tanker booked for US refined product storage

BP provisionally booked a long range 1 (LR1) tanker, the STI Expedite, for US Gulf coast floating storage from early April for around $30,000/d, according to a shipbroker.

The floating storage booking is a sign that typically less expensive inland storage capacity is filling up in the US amid coronavirus-depressed domestic demand. US Gulf coast refiners have cut their runs by an estimated 20pc as a result.

This is the first reported refined product storage play in the US Gulf coast this month.

Global inquiry for oil product floating storage has risen in the past two weeks, as the wide spread between current and future product prices has made storage plays economical.

Scorpio Tankers, the owner of the STI Expedite, was not immediately available for comment, and BP does not comment on commercial affairs. The vessel was positioned near the British Virgin Islands today, according to vessel tracking services.

By Michael Connolly