Monday, July 13, 2009
Barclays to sail supertankers
Monday, 13 July 2009
The bank intends to acquire about 20 huge vessels on long-term leases so that it can not only trade, but also carry oil and gas around the world. Its Barclays Capital investment banking arm already has five large tankers and cargo ships carrying oil, gas and other commodities and it makes huge profits in commodity trading.
Just days after the Prime Minister launched an assault on oil speculators whose activities he blamed for raising prices, it has emerged that Barclays is to hire a 314,000 ton supertanker to act as an offshore storage depot.
The Tai San, owned by Singapore shipping firm Ocean Tankers, will be filled with 'gas oil' - gas extracted from oil fields - and then sailed to Europe where it will sit offshore.
The tanker will wait there until the oil price rises and a sale is agreed.
A dramatic decline in chartering costs has made this tactic potentially hugely
profitable.
A spokesman for Barclays Capital declined to comment.
Source: This is Money
