Crude Oil

Crude tanker freight rates are unlikely to recover anytime soon unless there is a sizeable correction in vessel supply, according to analyst Drewry.

Investment bankers BTIG hosted Rystad Energy for an online update on the oil markets with Artyom Tchen, a senior analyst with Rystad in a presentation entitled ‘Irrational exuberance or fundamental recovery?’

Oslo-based energy analyst Rystad Energy estimates that today’s oil supply demand imbalance of more than 26m barrels per day (bpd) should fall to 13.6m bpd in May and about 6m bpd thereafter.

The Singapore authorities have sought to reassure businesses that there is “no serious impact” on the bunkering and oil trading sectors from the bankruptcy filing of major local player Hin Leong Trading.

The surge in world oil production that has followed the failure of OPEC+ members to reach a consensus on further supply constraints at their 5 March meeting in Vienna is likely to mean that storage capacity for crude oil and products will run out...

You can have a rousing VLCC market, described by Nordic American Tankers chief Herbjorn Hansen as “the strongest we have seen in decades”, and you can have the prospect of reduced vessel supply, and therefore sharply higher capacity utilization ...

With the dual black swan events of the coronavirus (COVID-19) and the surge in oil supply Frontline ceo Robert Macleod believes that skyrocketing rates of $250,000 per day rates for VLCCs are real this time.