LONDON Aug 20 Oil traders have begun fixing
tankers to take North Sea, West African and Arab crudes to South
Africa for storage, hoping for a repeat of the multi-million
dollar bonanza they reaped in 2008-2009.
Shipping fixtures show that in late July and August, BP
, Mercuria, Total and Chevron all booked
suezmaxes to deliver crude to South Africa, with traders saying
that a good number of these barrels will go into storage.
Storing crude is now considered profitable for some
companies because of a glut of barrels in the Atlantic Basin
which has weighed on physical crude prices and Brent crude
As a result, a contango structure has developed which should
allow traders to sell stored crude for a profit at a later date.
(Reporting by Claire Milhench, editing by David Evans)