Tanker Firm Euronav Says Storage Demand Softens after Record Q2

Belgian tanker operator Euronav reported record-high second-quarter earnings on Thursday but warned that floating storage demand had eased sooner than it expected. The company, which operates shipping and storage of crude oil, benefited from soaring demand for oil storage at sea as buyers struggled to find storage space on land for surplus crude during a global economic slump caused by the coronavirus pandemic.

“Tanker markets continued to deliver strong earnings throughout Q2 and into the early part of the third quarter”, Chief Executive Hugo De Stoop said in a statement, but noted floating storage requirements declined sooner than it expected.

The company added the market pivoted earlier than it had originally expected towards 2019 consumption levels, driven by oil inventory and reduced supply and demand for crude oil. As worldwide demand for oil increased, crude held on tankers fell below 150 million barrels by the end of June, down from more than 180 million barrels in late April, according to IHS Markit.

However, mounting coronavirus cases have recently undercut market confidence in a demand pickup…

View entirety: Reuters