Swiss energy trader Glencore International has leased out most of its landed fuel oil tanks in Singapore to PetroChina and FAL Oil, and taken up a floating storage vessel instead.
The move provides Glencore with more flexible storage options at a time when oil demand has slumped, and the shipping sector is fighting a prolonged downturn.
Glencore has sub-leased 100,000 m³ of the Universal terminal on Singapore's Jurong Island to PetroChina.
The Chinese firm, which has a 35% stake in Universal and already has 300,000-350,000 m³ of dirty oil storage in the terminal, is a major fuel oil player in the Singapore oil hub.
Another 100,000 m³ was leased out to United Arab Emirates-based trading firm FAL Oil, which set up office in the city-state earlier this year, looking to expand its Asian trading operations.
This leaves Glencore with just 80,000 m³.
The Swiss trader went on to lease a Very Large Crude Carrier (VLCC) on a spot basis for around three months from PetroTitan, a unit of Titan Petrochemicals Group.
The VLCC has a total capacity of over 265,000 dead-weight-tonnes (dwt), and is Glencore's second floating storage unit. It uses another floating storage unit, Taurus, in Tanjung Pelepas, off Malaysia's southern Johor state.