Ogarbitrage, the $40K/day rate was for VLCCs; about 2 million barrels, not the ULCCs. That's a cost of $7.30/bbl/yr on a full year rate. It looks like a marginally profitable trade at the moment. What's happening with spot prices?
I took the day rate as a cap for both ULCC and VLCC fleets. Economies of scale would suggest a better rate for the ULCC at 3mm bbls. As the most economical it was probably the first to reach an open arb. TI-O will more than likely take delivery of five 600k Brent lots, sit idle against a dock somewhere in Rotterdam, and sold back into the Brent complex in 12 months. ULCC/VLCCs now, Suezmax fleet will be next.
South Sudan's Feb Dar Blend crude oil exports set to rise 4% on month to 4.8 mil barrels More WAF supply hitting the Feb market.
? Could you explain? I've traded a lot of stuff, but not much oil. I'm sure that there are much smarter ways to trade oil than what I'm doing.
Middle East Crude-Oman, Qatar Marine under pressure Med Crude-Urals in Baltic near parity with Med for first time since Sept The North/South sour arb has closed.