By Jim Cramer
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We have lots of talk these days about the outrageous amount of oil being stored in ships around the globe. To me, this huge number, which seems to grow by the day, seems like an incredible manipulation to keep prices high, but the motivation is neither here nor there. The reality is that rates are moving up gigantically because of it. Right now, according to the Lloyd's shipping newspaper, we are seeing 149 ships now deployed for temporary storage, a jump of 29, and they include 37 of the very large crude carriers, 17 smaller ones and 95 long-range product tankers. Lloyd's reports that 30 of these storage facilities are chartered right from the shipyards. Rates are skyrocketing to $32,000 a day -- the highest since July, and I think they are going higher because there is so much demand for temporary storage.
Unfortunately NAT dropped their Dividend this last quarter, so I had to drop NAT until there is a turn around on that front.
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