- Crude oil tanker stocks have been stuck for nearly a decade due to chronically low oil freight rates.
- Last year saw a massive spike in rates due to a one-off need for floating storage which has now passed.
- Oil freight rates are modestly low today as low oil production and demand have made for poor trade volumes.
- Crude prices are rising due to low production, not strong demand, so oil prices today should not be taken as a bullish factor for tankers.
- DHT Holdings has arguably the best fundamentals compared to peers, but we'll need to see oil demand return to normal before it is a great bet.
For further details see:
DHT Holdings: Great Company, Poor Outlook For Oil Tankers