160,000 metric ton capacity
times 2204 pounds per ton
352,640,000 pound capacity
300 pounds of oil per barrel
1,175,467 barrels
at -$37.00
= profit after filling, tow it out to sea and scuttle it
= profit(the skit this is from, was specifically about an oil tanker. In case you've never seen it: https://www.youtube.com/watch?v=3m5qxZm_JqM)
My point is...you get alot of boat for $17 Million USD.
...Seafarers, this is your moment!
...filled with passengers, too!
(Permission to dock not included.)
Are low Oil prices only in the US? I would assume it would be a worldwide thing.
Aside from some differences in the specifications of the crude itself, the core difference between these contracts and the key driver for the massive price drop is the delivery location.
Brent contracts are the global benchmark, and delivery can take place in a variety of locations. WTI means West Texas Intermediate, and the delivery location for futures is in Cushing, Oklahoma:
"Delivery shall be made free-on-board ("F.O.B.") at any pipeline or storage facility in Cushing, Oklahoma with pipeline access to Enterprise, Cushing storage or Enbridge, Cushing storage. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations..."[1]
Prices therefore reflect the demand and storage capacity/cost there, as well as the cost of sending it somewhere else.
The contract that had the massive drop into negative value was WTI for delivery in May. The owners of those contracts when trading terminates are responsible for taking delivery of that oil in the specified location at the agreed price in May. The negative price reflects the fact that noone wants that oil in that location at that time, even for free. At the low point, buyers were demanding >$35/barrel to take it.
For reference June WTI contracts are currently still $21.43.
[1] https://www.cmegroup.com/trading/energy/crude-oil/light-swee...
So yes...but.. no.
Why wouldn’t someone be able to sail this tanker to a US port, fill it with crude, then offload it at a non-US port? Or even re-flag it as US and trade between ports directly
https://horizonship.com/ship-category/tankers-for-sale/crude...
What's notable about the selected ship?