Storing-up Problems for the Future – the Risks of Long-term Oil Storage
When we last visited the issues surrounding the long-term storage of oil on offshore vessels, concerns were rising for marine insurers as this became an attractive strategy for oil traders to store their product, while shipowners benefitted from a cost-effective way of employing their tankers.
Since then, market uncertainty has again increased the attractiveness of long-term storage, and a steady rise in oil prices is anticipated over the coming months. However, the risks associated with this remain and may not have been properly considered.
Marsh’s Global Marine Practice has published a report, Storing-up Problems for the Future – The Risks of Long-term Oil Storage, which examines the risk concerns for vessel operators, traders, financiers, and marine hull and protection and indemnity (P&I) insurers.