The oil crash has divided industries into winners and losers. Airlines, for example, saw profit margins soar on cheap oil, while railroads blamed weakening shipments of fracking sand and crude oil for employee furloughs. The oil industry itself is still waiting for prices to bottom. One segment of the oil industry, however, has done well even as OPEC saw its prices sink below $30 a barrel: shipping.
As oil prices plunged…
…the cost to ship the commodity rose.
That’s because cheap oil whetted a global appetite…
…and oil companies tied up tankers so they could use them to store oil offshore while awaiting higher prices.
But forecasts for rising oil prices are pushing oil out of storage…
…and tanker supply could again outpace demand, causing shipping costs to fall.
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