As we noted in the 2017-2021 Tanker Market Outlook, an increasing amount of spot fixture activity has been carried out by disadvantaged tankers in 2017 as older tonnage tends to fix below market levels. Meanwhile, a notable amount of older tankers have been fixed for operational floating storage in the time charter market or optioned for short-term FSO duty in the spot market.
As part of our forecasting process, we like to evaluate our forecast performance throughout the year and provide our clients with the results (Figure 1). At the beginning of the year, we noted in our Tanker Market Outlook that the year 2017 is likely to be a down year for owners of all tanker classes on the basis of supply side risks. Similar to what we expected, over 180 tankers (DWT>27.5k) joined the trading fleet and our original forecasts for the 19 trades included in the 2017-2021 Tanker Market Outlook are only 3% above actual market levels for ...
There have been 146 tanker orders placed through July, compared to just 56 during the same time period last year. The bulk of these orders have stemmed from the VLCC and MR2 classes as 39 and 47 firm orders have been placed, respectively (Figure 1). Maran Tankers placed a firm order for seven VLCCs at Daewoo this year, while BW/DHT has collectively placed six at Samsung and Hyundai Heavy Industries.
Global oil demand is expected to grow at 1.3% in 2017 to over 96.9 million b/d with significant gains projected in the middle-light end of the barrel. Over the forecast period (2017-2021), we are likely to see global oil demand expand by 1.0% annually, climbing above 100 million b/d. Among the biggest drivers of this growth are naphtha, gasoline and gasoil, with positive annual growth factors of 1.5%, 2.1% and 2.0%, respectively (Figure 1). On a regional basis, emerging economies in the Far East and South East Asia are expected to boost ...
In 2016, OPEC members established a concerted effort to rebalance the global oil market through production cuts, which would be implemented by all members excluding Iran, Libya and Nigeria. After implementing the agreement on January 1, 2017, total crude output from the group over the first half of 2017 has fallen by 400,000 b/d year-on-year; however, when compared to 2016’s full year average, we see a greater decline of over 800,000 b/d.
McQuilling Services is pleased to announce the release of the Mid-Year Tanker Market Outlook Update. The Mid-Year Tanker Market Outlook Update provides an outlook for monthly spot market freight rates and TCE revenues for 19 major tanker trades across eight vessel segments for the second half of 2017 and the remaining four years of the forecast period.
McQuilling Services is in the midst of producing its 20th Anniversary Edition 2017-2021 Mid-Year Tanker Market Outlook Update and is proud to announce its release the week of August 7th, 2017. The Mid-Year Tanker Market Outlook Update provides an outlook for spot market freight rates and TCE revenues for 19 major tanker trades, including two triangulated trades, across eight vessel classes for the second half of 2017 and the remaining four years of the forecast period to 2021.
