SBLK - Supertanker market weighed by surging supply sinking storage - Reuters

The outlook for oil tankers starts the new year in rough waters, as a plunge in the volume of crude oil stored on ships has combined with unexpected cuts from Saudi Arabia to create a glut of vessels available for hire, Reuters reports.Dayrates for very large crude carriers in 2020 topped out at record highs of more than $240K as the coronavirus slammed demand, creating an oil surplus and a scramble for storage, but rates have since sunk $7K/day."The loss of 1M bbl/day of Saudi production equates to annualized tanker demand destruction of 23 VLCCs," says Okeanis Eco Tankers executive Aristidis Alafouzos.Clarksons Research estimates that as of Jan. 22, 95 vessels - the equivalent of 130M barrels - were being used for storage, compared with a peak of more than 290M barrels in May 2020.Among potentially relevant tickers: [[FRO]], [[NAT]], [[NNA]], [[NM]], [[NMM]], [[TNK]], [[TNP]], [[TK]], [[DSSI]], [[ASC]], [[SFL]], [[DHT]],

For further details see:

Supertanker market weighed by surging supply, sinking storage - Reuters