Gasoline, diesel and jet fuel is at records high right now and traders are deciding to stash refine oil at sea to dodge the commodity price. Since this pandemic has stopped most transportation fuel is not needed as it once was, airlines have canceled most flights due to the disease and want to keep themselves and customers safe. That being said the price have gone into a tailspin and there is no where to put it on land, so they are staying in the ocean with no where to go. The cost to charter a vessel a day is about $170,000 which is very different from the price it was in early March which was $17,000. Even though this pandemic has hit very hard on a lot of industries, the oil and gas industry will go up in a matter of time.
This is worrisome for the environment. The increase of vessels remaining at sea with stores of oil increases the risk of potential oil spills into the oceans. I hope they are taking the necessary precautions to prevent this.
ReplyDelete