
For sale: Oil Tanker asking $17M - caublestone
https://horizonship.com/ship/274m-suezmax-crude-oil-tanker-2000-dwt-159057/
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symplee
This bad boy holds about negative $-43,492,267 dollars worth oil.

    
    
      160,000 metric ton capacity
      times 2204 pounds per ton
      352,640,000 pound capacity
      300 pounds of oil per barrel
      1,175,467 barrels
      at -$37.00
      = profit

~~~
fred_is_fred
With the negative price someone will pay you to store it.

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gonesilent
You can bet some not so seaworthy tankers are being put to use again...

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TylerE
Rather the opposite. There is NO demand for oil right now. All the storage
facilities are full.

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throwaway894345
I think the parent was suggesting that they would be used for storage.

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robodale
I know a few people that have ~$400K USD leisure boats, and they really are
not that large. ...and this is in Iowa, USA, mind you.

My point is...you get alot of boat for $17 Million USD.

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jbyers
...and if you'll accept it fully loaded, the price is $15M.

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chrisco255
Act now and we'll throw in a Carnival Cruise ship for FREE! Call now!

...Seafarers, this is your moment!

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antonvs
> a Carnival Cruise ship

...filled with passengers, too!

(Permission to dock not included.)

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chadash
The problem is that the ship is in Africa. If it were docked in the US and in
working condition, it would already be used for storing oil. No, you won't be
able to buy this boat and get it here on time to fill it up with negative
priced crude oil.

~~~
ars
> If it were docked in the US

Are low Oil prices only in the US? I would assume it would be a worldwide
thing.

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ddeck
Most would agree that oil prices are "low" everywhere, but there is currently
a substantial gap between near-term contract prices for WTI (US) and Brent.

Aside from some differences in the specifications of the crude itself, the
core difference between these contracts and the key driver for the massive
price drop is the delivery location.

Brent contracts are the global benchmark, and delivery can take place in a
variety of locations. WTI means West Texas Intermediate, and the delivery
location for futures is in Cushing, Oklahoma:

 _" Delivery shall be made free-on-board ("F.O.B.") at any pipeline or storage
facility in Cushing, Oklahoma with pipeline access to Enterprise, Cushing
storage or Enbridge, Cushing storage. Delivery shall be made in accordance
with all applicable Federal executive orders and all applicable Federal, State
and local laws and regulations..."_[1]

Prices therefore reflect the demand and storage capacity/cost there, as well
as the cost of sending it somewhere else.

The contract that had the massive drop into negative value was WTI for
delivery in May. The owners of those contracts when trading terminates are
responsible for taking delivery of that oil in the specified location at the
agreed price in May. The negative price reflects the fact that noone wants
that oil in that location at that time, even for free. At the low point,
buyers were demanding >$35/barrel to take it.

For reference June WTI contracts are currently still $21.43.

[1] [https://www.cmegroup.com/trading/energy/crude-oil/light-
swee...](https://www.cmegroup.com/trading/energy/crude-oil/light-sweet-
crude_contractSpecs_futures.html)

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ggm
the USA has a very restrictive (and personally I think correctly so) maritime
policy: You cannot just sail any boat there, nor can you buy goods, load or
trade between ports in the USA without meeting labour and safety issues.

So yes...but.. no.

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xref
What do you mean? I assume you’re referring to the Jones Act
[https://en.m.wikipedia.org/wiki/Merchant_Marine_Act_of_1920](https://en.m.wikipedia.org/wiki/Merchant_Marine_Act_of_1920)

Why wouldn’t someone be able to sail this tanker to a US port, fill it with
crude, then offload it at a non-US port? Or even re-flag it as US and trade
between ports directly

~~~
ggm
Marine insurance. Minimum crewing standards. Tech compliance. Hull rating.
Anti pollution equipment. CO tank purge. Bilge filters. Hull age.

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riffic
do these sorts of vessels not come up for sale very often? Not sure what's so
notable about this particular listing.

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tehlike
The current oil crisis and the lack of storage makes storage space really
expensive.

~~~
riffic
There are at least 150 listings for crude oil tankers at this site:

[https://horizonship.com/ship-category/tankers-for-
sale/crude...](https://horizonship.com/ship-category/tankers-for-sale/crude-
oil-tankers-for-sale/)

What's notable about the selected ship?

~~~
tricolon
Yeah, I don't get it. There are several more expensive and several less
expensive than the ship in question: [https://horizonship.com/ship-
category/tankers-for-sale/crude...](https://horizonship.com/ship-
category/tankers-for-sale/crude-oil-tankers-for-
sale/?sort=price&sort_dir=DESC)

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obilgic
previously discussed:
[https://www.reddit.com/r/wallstreetbets/comments/g4yqr4/only...](https://www.reddit.com/r/wallstreetbets/comments/g4yqr4/only_375k_for_oil_tanker_whos_in/)

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nodesocket
How many barrels of oil does it store?

