Shipping executives have been looking to demand for floating storage as a prop for refined products tanker rates but market watchers remain sceptical about whether tankers will benefit from many floating-storage fixtures in the coming weeks.

On the bullish side, Teekay Tankers tipped floating storage as a bright spot during the current quarter. In a press release last week announcing its results, Teekay pointed to the “potential” for increased long-range-two (LR2) demand during the current quarter, driven by “intermittent and localised short-term floating-storage requirements”, particularly for distillates, which includes heating oil, diesel and jet fuel.

Tight