(www.MaritimeCyprus.com) In the last edition of TANKER UPDATE, DNVGL argues that increased ordering of crude oil tankers does not necessarily mean a prolonged period of subdued earnings. In light of continued oil demand growth, global inventories falling to their five-year mean level or US exports rapidly increasing their pace, the expected demand for tankers seemed quite robust anyway.
On the flip side, we still have the OPEC’s painful measures and, so far, all members have exemplified themselves with meticulous compliance to their oil production limits. Elsewhere, the problems in Venezuela are only getting worse.
The country’s oil production, their main source of revenue, fell to just 1.5 million barrels per day (mbd), representing an almost 25 per cent decline year-on-year. At the time of writing this article, we still do not know the result of the elections. However, a change of president seems unlikely, which will most likely deepen the ongoing crisis and certainly increase tensions with the US. Speaking of the latter, we also need to mention the US withdrawal from the Iranian nuclear deal and the repeal of the sanctions relief. It may be argued whether it is good or bad news for tanker demand, but undoubtedly it means less oil in the international markets until somebody else picks up the slack.
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