Fifty tankers — twice the norm — are waiting for a dock at Rotterdam port, a major port and oil hub of Europe, according to Bloomberg, the representative of port T. Schellekens. The queue accumulated at the port vessels has reached a seven-year high. “This is a clear indication that due to a glut of oil tanks filled to the limit, — said the Agency Gerrit Zambo, an oil trader Bayerische Landesbank in Munich. — All prefer to reduce oil production storage. It is a sign of a bear market”.
Traders prefer to profit from the contango (much higher than prices of futures contracts on current levels) by buying cheap oil and it is loaded into the tanks for sale in the future at higher prices. As you fill storages on the banks traders can start to fill up the oil floating storage tanks — a tactic last time was widely used in 2008-2009, said in February the Agency Chris Baik, member of the Board of the world’s largest independent trader Vitol Group.
The 19th of February, the volume of oil stored in tanks Rotterdam, reached a seasonal high of 51.3 million Barr., from Genscape, specializing in the monitoring of oil infrastructure. Last week the world’s biggest terminal operator for petroleum storage Royal Vopak NV announced that as of the fourth quarter of 2015 it owns 11 terminals in the Netherlands were filled at 96% versus 85% a year earlier. The oil terminal in Cushing, Oklahoma, where it accumulates the bulk of oil reserves the USA had a similar situation — reserves reached a record level.