Friday 8 February 2019

OPEC Cuts? Rates Plunge? Oil Tanker Market to Shrug It All Off - Bloomberg

OPEC Cuts? Rates Plunge? Oil Tanker Market to Shrug It All Off - Bloomberg:

It’s never ideal if you own a fleet of crude tankers and the world’s oil producers remove millions of barrels of cargo from the market to avert a glut. Nor is a collapse in charter rates normally the best news.

While both those things happened in the past few months, the people paid to evaluate the shipping industry’s prospects are actually turning a little more bullish.

The analysts’ optimism stems from a conviction that the world’s refineries will have to process more crude in order to supply ships with new kinds of fuel in 2020 under rules set out by the International Maritime Organization. On top of that, historic trade flows are at risk of disruption as OPEC and allied producers curb output of one type of crude at a time when American drillers boost supplies of another.

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