Over the last few months, the crude tanker market has continued to show signs of volatility, with rates still suffering and cargo miles faltering again in February after a short period of recovery towards the end of last year.
Online valuation and data provider VesselsValue says that oil production cuts imposed by Saudi Arabia and OPEC and floating storage numbers returning to pre-pandemic levels are only expected to exacerbate the situation.
Global oil demand is currently being driven by China and South East Asia, partly due to how well China has managed their response to Covid-19, but sustained low demand across the rest of the world suggests a recovery for the Crude Tanker market is still a way off yet. Tanker owners and operators will be keeping a close eye on demand over the next few quarters, as vaccination programs bring some hope of demand improvement and lockdowns begin to ease.
VesselsValue’s Head Trade Analyst, Charlotte Cook, has used the company’s \supply and demand data to assess the crude tanker market in recent months, as well as to look at what the company expects the future to hold for the sector in the short-term.