Concordia Maritime is looking ahead
THERE IS A LOT INDICATING A STRONG TANKER MARKET IN 2021
The effects of this spring's extensive stockpile of oil will affect the tanker market for the rest of the year. But as the effects fade, there is reason to believe that there will be an increasing demand for tanker transports in line with an increasing consumption of oil. In combination with record-low growth rate in the global tanker fleet, this is expected to lead to a gradually stronger market in 2021.
Concordia Maritime is forecasting a weak autumn followed by a strong market in 2021. For more information on this, see Market Update 2020-09-11 at Concordia Maritime’s website.
Following a bottom quotation in April, oil consumption has recently steadily increased and relatively sharply. Forecasts indicate that the increase will continue and return to pre-covid-19 levels in the spring/summer of 2021.
At the same time, growth in the fleet is record low, and the orders for the construction of new tankers are at their lowest in more than 25 years.
“It is our assessment that increased consumption of oil, normalized stock levels and record-low net growth in the fleet will combine to create strong demand in the tanker market,” says Kim Ullman, president of Concordia Maritime. “That forecast applies provided that there is not a large second wave of virus spread with new extensive shutdowns.”
