Double bottoms are a strong technical sign that prices have reached their lows, as are future position reductions by commercial hedgers.
On Thursday a double bottom was formed above $34.00/bbl; and Friday's trading showed a double bottom above $36.00/bbl, at which point crude rallied to close at $38.94/bbl.
In order to explore the detection of corrosion in the space between double bottoms, a series of laboratory tests were conducted.
The laboratory tests performed indicated the possibility of detecting corrosion occurred in the space between double bottoms. However, the specific conditions had to occur.
Both new as well as modernized tanks have the leakage problem in the space between double bottom and the corrosion problem within this space.
For these variants of contact of metal plates the tests were conducted on especially prepared samples of metal plates simulating the construction of the double bottom. The laboratory test in the first variant of plate contact gives good results for detecting corrosion sources from outside bottom.
Yet, while both chambers preferred to achieve the bill's ends through multilateral action, the Senate alone expected the Coast Guard to promulgate regulations governing tanker design to include double bottoms. The Senate's attitude fueled fears that the United States would act unilaterally if international negotiations were unsatisfactory.
This provided clear evidence to oil majors and the shipping industry that the United States would force changes in tanker construction--if not necessarily the double bottoms requirement.
Why did the maritime states and industry feel confident resisting double bottoms but not SBT?
Rather, "international negotiations tend to evolve to a final product--in the case of MARPOL '73, in the course of a month in the Dean's Yard at Westminster Abbey--as arguments are exchanged, national capitals consulted and noses counted."(67) McManus relates that gaining extension of the treaty to refined oils and other objectives justified accepting the treaty without double bottoms.