(Adds further detail, background)
LONDON, March 11 (Reuters) - Royal Dutch Shell is
in discussions to charter at least three supertankers to store
around 6 million barrels of crude oil at sea, shipping sources
said on Wednesday.
Shell has provisionally booked the vessels, known as very
large crude carriers (VLCCs), for storage options for at least
three months, the sources said, adding that the fixtures were
still to be concluded.
A Shell spokeswoman declined to comment.
If fully fixed, these would be the first tankers to be used
for floating storage after the recent fall in oil prices.
The shipping sources said at least one of the vessels had an
option to store oil in the United States.
Oil prices and the broader crude market pricing structure
collapsed in recent days after OPEC and other major producing
nations ended an output cut deal.
A glut of crude oil in global spot markets is forcing the
price of oil for immediate delivery below forward futures costs,
known as a contango structure, making it potentially profitable
to buy oil, store it offshore onboard vessels and sell it later
at higher prices.
Brent crude futures for nearby delivery are trading at
their biggest discount to the November contract in over four
years, according to Refinitiv data. <LCOc1-LCOc7>
(Reporting by Jonathan Saul and Ron Bousso. Editing by Jane
Merriman and David Evans)
