As a supplement to this year's 2015-2019 Tanker Market Outlook, we've developed an "Outlook Scorecard," which provides a snapshot of previous market behavior as well as 2015 forecasts. The one-page format makes it a perfect desk reference that can be used throughout the year.
McQuilling Services has monitored the floating storage case since July. This note is the final chapter of the three part series, “Not all Contangos are Created Equal.” As 2014 came to a close, the Brent contango began to steepen and Brent future premiums became wide enough to hire VLCCs to store crude. January was an active month for one-year VLCC time charters as traders piled into the storage trade.
In our 2014 Industry Note No. 22 – “Bigger is Better,” we inferred from our Sharpe Ratio analysis that VLCC and Suezmax tankers may offer investors a more attractive risk-adjusted return in the long-term. This thesis was further tested over the last month as we concluded our asset price forecast and investment analysis sections of our 2015-2019 Tanker Market Outlook. The results of our analysis suggest that our initial thesis was correct, but further specified that the 10-YR old tankers of these two vessel classes will outperform their younger counterparts.