Global oil inventories are forecast to rise sharply in the coming quarters, with the US Energy Information Administration projecting builds of 2.3m barrels per day. If onshore capacity tightens, buyers may again turn to ships for floating storage, echoing dynamics last seen in 2020. At that time, up to 11% of the tanker fleet was tied up in storage, driving VLCC spot rates to historical high levels.

Positive spillover for tanker earnings
Clarksons estimates that every 100m barrels placed in floating storage absorb 2% of the global tanker fleet. Even if demand centres on VLCCs, the knock-on effect of reduced fleet availability supports earnings across the broader tanker market. With fundamentals already tight, analysts suggest storage demand could add meaningful upside in the short-term and further extend the current period of strong returns.