Concordia Expects Stong Tanker Market

Shailaja A. Lakshmi
Friday, August 16, 2019

During the first half of 2019, the tanker markets produced voyage result per day levels that exceeded the corresponding period in the slump year 2018 by 50-100 percent, said Concordia Maritime.

The Swedish international tanker shipping company's view of market development going forward is largely unchanged.

Several factors still point to a gradually stronger market in autumn, it said. In addition to positive fundamentals in the form of sustained high demand for oil, seasonality and declining net tanker fleet growth, US exports of crude oil and oil products and the consequences of IMO 2020 are also helping to create exciting conditions.

"With regard to OPEC’s production, we had expected a decision on a gradual return to normal production rates at their July meeting. This did not turn out to be the case. If their decision to extend the production cuts persists, we are unlikely to get the extra boost we expected and hoped for. How this will transpire remains to be seen," Concordia said.

"Continuing production cuts would continue to decrease OECD oil stocks, which are currently in line with the important 5-year average. It is therefore not beyond the realms of possibility that OPEC will reconsider its decision as early as this autumn," it added.

 "Developments during the second quarter were largely as we expected – namely, weak but still stronger than the corresponding quarter the previous year," the company said.

Among the reasons were OPEC’s production cuts, extended seasonal maintenance of refineries prior to IMO 2020 and extensive deliveries of new vessels.

The increased number of vessel deliveries is largely due to delays. The vessels should actually have been delivered in the first quarter but came into service in spring instead.

Normal refinery maintenance has been longer and more extensive than usual this year due to conversion work and preparations for IMO 2020. Overall, increased supply of vessels in combination with lower demand for transportation to and from refineries has contributed to lower market rates.

Categories: Tankers Oil Transportation

Related Stories

Seatrium Delivers Fifth Jack-Up to Borr Drilling

CRC Evans Secures Work at Qatar’s Largest Offshore Oil Field

Fugro Names Annabelle Vos Director for Middle East & India

CNOOC Kicks Off Production from Bohai Bay Field

Chinese Demand Spurs Global Wind Turbine Ordering

LNG Carriers Line Up At Malaysia's Bintulu Complex After Maintenance

IK Group Spins Off Norclamp

Shearwater Scores Deepwater OBN Extension in India

MOL Increases Stake in MODEC

Environmental Group Backs Out of Scarborough Litigation

Current News

Velesto Completes Removal of Wrecked Naga 7 Jack-Up Rig Off Malaysia

BP Greenlights $7B CCUS Scheme Tied to Indonesia LNG Facility

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

US Firm Finds Chinese Partner to Deliver Mobile Offshore Drilling Units

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Global Offshore Wind Stumbles to the End of '24

Seatrium Delivers Fifth Jack-Up to Borr Drilling

Malaysia's FPSO Firm Bumi Armada Eyes Merger with MISC’s Offshore Unit

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com