Iran hoarding oil

Stratfor ^

[DManA]

IRAN HOARDING OIL ON SUPER TANKERS

Posted By: IZAKOVIC Date: Wednesday, 21 May 2008, 2:45 p.m.

In Response To: OLMERT TO PELOSI: US SHOULD IMPOSE NAVAL BLOCKAGE ON IRAN (IZAKOVIC) Geopolitical Diary: An Iranian Oil Mystery

May 16, 2008 0200 GMT

Iran has booked a supertanker that can store up to 270,000 tons of crude oil for up to 90 days. Iran already has more than 28 million barrels of oil floating in tankers outside its main export terminal in the Persian Gulf. Something is wrong with this picture.

[more]

http://www.stratfor.com/memberships/116617

[Hacklehead]

Sinking those ships would be insanity. Now if they were to be taken over by “pirates” and taken to a friendly offloading station...

[Future Snake Eater]

Maybe it's because they don't have any buyers:

Mash here

[WellyP]

Iran may not be hoarding that much. It is largely that they just not have a market for their 3.6% sulpher heavy sour crude. If you are going to buy oil, you want to get good quality oil that you can refine. There are very few places in the world that can refine the stuff and most of those plants are in the States.

They could also be thinking about using the tankers to blockade the Straights of Hormuz should the US attack.

[Eric in the Ozarks]

It was on FR this morning. Scroll back; you’ll find it.

[thulldud]

Yes, he used the African-American Bird...............

It was an African swallow. Those little fellows can really move (unladen, of course.)

[RightWhale]

28 million barrels isn’t significant at this level.

[wordsofearnest]

Bears make money, Bulls make money, Hogs never do.

[ßuddaßudd]

By who?

[east1234]

You are correct, a limited number of refineries can handle it. Supply outstrips demand for their crap.

[Red Badger]

It was an African swallow. Those little fellows can really move (unladen, of course.)

Well, with Obambi's ears I'm sure the load carrying capacity was substantially improved......

[Red Badger]

Nor do Chickens.......

[dblshot]

There is a shortage of tankers on the world market and the spot rate for a tanker would make it highly unlikely that anyone would use a tanker for storage.

This from the Hindu Business Line late last year gives an idea of what Very Large Crude Carries get per day: “the spot rate for VLCC shot up from $42,718 per day on September 4 to $62,263 on September 21 and $76,614 on September 27.
While the average rate during 2003-04 was $26,470 per day, last month the average rate touched the $54,200 mark.
The VLCC rates from West Africa to the US reached close to the $90,000 mark, while rate for Suezmax tankers on the West Africa to US East Coast route jumped to $55,500 per day.”
http://www.thehindubusinessline.com/2004/10/02/stories/2004100201050700.htm

Then there is the issue of ownership of the oil. Generally someone borrows money to buy the oil and pays the loan off when they sell it. Interest can easily go to 100K per day for a ship load of oil. If you are a producing country and want to hoard oil the smart thing to do is store it in the ground, in other words don't pump it. Storage tanks are generally for working inventory, getting a load together and keeping a little inventory on hand to continue operations in case a pipeline breaks. Refineries are on a Just in time delivery schedule so you can't afford disruptions. So this story just doesn’t make any sense. That's not to say the Iranians only do things that make sense.

[DManA]

Could it carry a coconut?

[thulldud]

Ping to post #34.

[VanShuyten]

Perhaps there's a bottleneck at the refineries for sour crude.... Or maybe Obama has made a deal with the Iranians to release that oil to the US refiners just before the election to drive down prices and steal the presidency.(Puts on tinfoil hat)

[Red Badger]

Could it carry a coconut?

If you put some lime in it.........

[Appleby]

I have three words to say:

TORA! TORA! TORA!

[Joe Boucher]

Just think of the weapons these floating fuel storage systems could be if used improperly.
Send several to the straits or any number of other choke points and set them afire.

[TexasGunLover]

Just think of the weapons these floating fuel storage systems could be if used improperly.

Come on, our savior Hussein says that Iran is here to help and our friend. /sarc