TNP - Tankers Are A One-Way Trade

• Tanker rates and profits stand to appreciate in both upside and downside global economic scenarios and represent a very versatile trade.
• Tanker demand is not necessarily reflected by WTI future prices. Global oil production and barrels at sea are far more relevant.
• OPEC+ is ramping production and by 2022 will likely meet and possibly greatly exceed pre-pandemic production levels. This directly adds to demand for tanker ships.
• The orderbook is low. High steel prices and currently low tanker rates support scrapping which means low tanker vessel supply and is a positive for rates.
• In the downside global economic bust scenario, tankers have a built-in hedge called oil storage demand.

For further details see: