Traders Keep North Sea Crude on Tankers Despite Rally

Here’s something for oil bulls to chew on as Brent crude trades near $72: tankers are holding several million barrels of oil in the North Sea in what is normally a strongly bearish indicator.

Five tankers carrying about 6 million barrels of North Sea crude have been floating off European shores for two to three weeks, according to ship tracking data compiled by Bloomberg. As the current market structure doesn’t make economic sense for storage, the increase in floating barrels looks like a sign of weak demand, especially from Asia…

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