- 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:
Tankers Are A One-Way Trade