Tankers are used as crude storage units anchored on the US coast
Since crude storage capacity on land is limited and close to being exhausted, oil tankers are used by traders to store crude resulting from the decline in oil prices related to lower demands in times of the corona pandemic.
The biggest crude oil glut in history takes place at the moment.
According to Reuters crude oil held in the sea as storage hits a new record at 160 million barrels including 60 supertankers, known as very large crude carriers (VLCCs) holding over 2 million barrel each. In February less than 10 VLCCs were chartered worldwide.
The crude amount stored at sea doubled compared to three weeks ago. Offloading locations are typically the U.S. Gulf and Singapore, where major oil hubs are situated. But the crude storages are almost full. Rather than offloading the crude, tankers anchor on the coast for storing purposes. 19 supertankers were reported to be heading to the United States this week. Lots of oil tankers are already visible on the US coasts.