The world has run out of places to store oil.

“Rystad Energy estimates there may be only 21 million barrels’ worth of free storage left in a country still producing 12 million barrels of oil a day — a feature certain to keep prices low,” reports The Hill.

“The market is very concerned about a repeat of negative pricing as the Cushing storage and delivery hub saturates,” added Harry Tchilinguirian, global oil strategist at BNP Paribas in London, as quoted by Reuters.

As a result of supply issues, many oil companies are now storing oil at sea in tankers

In fact, according to Reuters, nearly 160 million barrels of crude is now being stored on ships.

While that’s bad news for most oil companies, oil tanker companies are thriving.  Some companies are charging up to $350,000 a day to store oil in some cases.

That being the case, we wanted to highlight three of the top tanker stocks to consider.

Nordic Tanker (NAT)

“We are making a lot of money at this time, improving our balance sheet tremendously, and I have never seen such a strong market,” Herbjørn Hansson, CEO of NAT, told CNBC.  In fact, given the state of the oil market, NAT can charge nearly $70,000 per day for ship usage, with some of its biggest clients including Exxon and British Petroleum.

Teekay Corp. (TK)

According to CEO Kenneth Hvid, as quoted by Barron’s, “Historically, you’re always using crude oil tankers from time to time to store oil. That is typically increasing when you see contango in the oil market, where the future price is higher than the current. Then it makes sense for traders to store the oil and take delivery later.”

Frontline Ltd. (FRO) 

We may see further upside in shares of FRO as the oil supply situation intensifies.

“Analysts at Jefferies just recently upgraded FRO to a Buy rating from a Hold rating. The analyst expects the tanker market to remain strong throughout 2020, resulting in “substantial” dividend payments. Tanker rates are exceeding expectations as Saudi floods the market with cheap oil,” as noted by The Fly.