An oil tanker hired by Citigroup Inc.'s Phibro LLC to store crude off Scotland's Orkney Islands left for the U.S. Gulf.
An oil tanker hired by Citigroup Inc.'s Phibro LLC to store crude off Scotland's Orkney Islands left for the U.S. Gulf, a port official said. The 1-million barrel Ice Transporter left Scapa Flow late Jan. 23, Captain William Sclater, operations manager at the port, said today. The vessel is headed for the U.S. Gulf, according to Sclater. Jeffrey French, a Citigroup spokesman, declined to comment.
"Ice Transporter has left for the U.S. Gulf," Sclater said in an e-mailed statement today. There has been "no word of any more coming here for storage," he said.
Oil companies and traders including Royal Dutch Shell Plc and BP Plc have stored as much as 80 million barrels of crude on tankers as the so-called contango, a market where buyers pay more for supplies later in the year than now, allowed them to profit from storing crude. The incentive to store oil on tankers is shrinking as the contango narrows, Dresdner Kleinwort Group's Gareth Lewis-Davies said in a report last week.
Phibro anchored the Ice Transporter, laden with North Sea Forties crude, on Dec. 24 with an option to remain there for three months.
Three vessels storing Forties remain at Scapa Flow, according to information on the harbor's Web site. They include the Eagle Vienna, a supertanker hired by BP.