TNK - Biggest Oil Price War Winner: Crude Tankers
Image Credit: DHT Holdings, Q4-19 Presentation
Background: Oil Price War Begins
With the Coronavirus (COVID-19) threatening to crush near-term global oil demand, OPEC called an emergency meeting with Russia last week to negotiate additional oil cuts in an attempt to further stabilize prices. Unlike in previous meetings, Russia refused to cut their exports, shocking the oil industry and leadership in Saudi Arabia. Saudi retaliated over the weekend, slashing their benchmark pricing, which led to the largest intraday crash since 1991 as additional supplies are set to flood the market.
The markets are already reeling