Tanker Weekly – 10 April, 2010

Baltic Dirty Tanker Index fell 1.5% last week while Baltic Clean Tanker Index decreased 2.4%. Broker reports suggest increased number of cargoes was being loaded and increased number of inquiries. Despite that the rates are at historically low levels and the reported (alleged) increase in activity has not made any difference.

The repercussions on crude oil markets are in my opinion negative. We have high stockpiles, we have contango roll trade unwinding and related oil stored on sea being dumped on to the markets as roll yield is approximately equal to storage costs  and increased OPEC production being loaded to ships.  And yes we have positive sentiment and excess liquidity in the financial markets. The question is only when the fundamentals will catch up with the markets.

Chart 1. Baltic Tanker Indexes Relative Performance

Source: Bloomberg

Chart 2. Baltic Tanker Indexes

Source: Bloomberg


This entry was posted on Saturday, April 10th, 2010 at 4:35 pm and is filed under Commodities, Tanker Weekly. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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