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BP Charters Oil Storage Tanker at 2020's Lowest Daily Rate

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BP plc (BP - Free Report) has booked a supertanker for storing crude oil off the coast of Malaysia, per Reuters. The British energy giant has managed to charter the oil tanker at the lowest rate of 2020 till now, added the source.

At a daily rate of $20,500 for three months, the integrated energy major has chartered the very large crude carrier (VLCC), per the source. The company also reportedly has an option for the extension of the contract for an additional three months at a daily rate of $22,000.

In April, the per day booking rate of a VLCC for a period of six months was $120,000 to $130,000, according to the source. The rate hit the high mark since, with the plunge in oil price owing to the coronavirus pandemic, traders rushed to store oil to be sold at a later date. Through the second and third quarters, more than 1 billion barrels of oil were reportedly stored.

Now, with the continuation in production cut by OPEC members and a slowdown in demand recovery for crude oil, there has been a drastic fall in demand for oil tankers, leading the daily rate to decrease significantly.

BP currently carries a Zacks Rank #4 (Sell).

Meanwhile, better-ranked players in the energy space are Pioneer Natural Resources Company , Concho Resources Inc. and Murphy Oil Corporation (MUR - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Pioneer Natural has seen upward earnings estimate revisions for 2020 in the past 30 days.

Concho is likely to see earnings growth of 21.6% in 2020.

Murphy’s 2020 bottom-line estimates have been revised upward over the past 30 days.

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