What is the possibility of someone buying

[.... callchet ....]

the tankers and just quit shipping oil ?

[marketcrazy1]

1. ZERO

!!

[.... callchet ....]

2. How far can they take this and by who else ?

"Morgan Stanley is smart for stashing oil because they have bought options on it and it they hold it until it's higher they make money"

They have a tanker floating around somewhere full of oil.

[marketcrazy1]

3. most of the tankers

are at scapa flow off the northeast coast of Scotland. you can track tankers online.

[.... callchet ....]

4. If they are in

scapa flow, are they empty or full and waiting. LInk to tracking, that sounds interesting

[marketcrazy1]

5. they are full

some holding as mutch as 2 million barrels each.. as for the tracking link, look it up! no offense but it is just as easy for you to do it as it is for me! you are sitting in front of the greatest information gathering tool ever devised by man!!! let your fingers do the walking!! there is a huge amount of info available to anyone who cares to look. there is MUTCH more to this whole financial market mess than the MSM is talking about.. if people took the time to research this problem they would be scared shitless!!! ( maybe it`s a good thing they do`nt )

[.... callchet ....]

6. Taking advantages of sources available in this modern world.

At the time I asked for the link you were the greatest information gathering tool ever devised by man!!! Said with a smile !

[.... callchet ....]

7. Are they underway or raising demand ?

[marketcrazy1]

8. not sure

i understand the question. they are parked. currently full of oil, being leased and insured to sit idle. I think storage cost are running at about a dollar a barrel per month. they are waiting ( anticipating ) for the price of oil to rise in the next 2 to 3 months, if oil goes back up to 65/70 a barrel they could see a profit of about a billion or more ( on total 80 million barrels being stored ) not all this capacity is at scapa flow, Iran has (i think) 8 or 10 million barrels in tanker storage, but it`s heavy sour crude with a limited market and lower value.

[GliderGuider]

9. I see only 3 tankers at Scapa Flow

As of 19:30 GMT Jan 16 2009, AIS shows three oil tankers in Scapa Flow: the Ice Transporter, the Atlantic Galaxy and the Eagle Vienna
http://www.shipais.com/showship.php?mmsi=636012624

That's at most 6 million barrels of crude. An hour and a half of the world's oil...

Where do you get "most" from?

[marketcrazy1]

10. I stand corrected

I should have looked closer at storage. I get 15 million barrels being stored in the area, still not "most" as i erroneously stated above. I agree this is not that big a deal. ( tanker storage )

[GliderGuider]

13. No problem.

I still don't see how people think oil storage in tankers is supposed to alter the world oil price. The scales just don't match up. The companies storing oil are trying to take advantage of the current price structure, not manipulate it. I think people get this idea because we're used to being told that an oil tanker is ginormously humongous -- so we assume one tanker carries a lot of the oil the world uses in a day. In fact, the global oil consumption is extraterrestrially huge -- in one day we burn the contents of 40 or 50 very large oil tankers. We burn about a cubic mile of oil every year, in fact.

And if the market goes from contango to backwardation while the oil is in storage, the owner is screwed, blued and tattooed.

[anigbrowl]

14. Quite. Although there's money to be made...

by paying a tanker full of oil to sit idle for a while, compared to the amount that is in land storage etc. it's a drop in the bucket (or barrel), unlikely to move prices significantly.

[GliderGuider]

11. Tankers just aren't very big.

A large VLCC or a ULCC can carry about 2 million barrels of oil, or 2.5% of one day's global oil consumption.

And you need a heck of a contango in the futures market to make a significant profit off storing oil. Right now the conditions are probably right, but oil market contangos have historically been pretty rare, and not generally steep enough to make the effort worthwhile.

[marketcrazy1]

12. agreed!!

a small profit from SOMETHING is better than nothing! more than anything this smacks of desperation to me (desperate for a profit)