Impact of Stored Oil Cargos

Morgan Stanley's analalyist, Adam Longson, questions the potential impact of all the oil stored on tankers in the Atlantic Basin. As the seasonal demand for oil and gasoline continues to fall, "combined with risk of new supply from Libya and Iran, a more range bound (if not lower), yet volatile, oil price environment seems increasingly likely in 2H15." The surplus in storage is weakening the gap between the prices of different crude oil grades.Owners of the tankers are finding that there aren't enough buyers for all the stored crude oil.