Tanker Stocks Plunge on Declining West African Crude Production
Shares of Frontline Ltd., the world's largest publicly listed crude tanker operator have fallen as a growing supertanker fleet, setbacks in West African oil production and declining refining margins all offset record OPEC crude production.
Total OPEC crude output at historic highs:
Tanker operators globally ordered very large crude carriers (VLCCs) in line with expected crude oil supply growth:
And then West African crude production met setbacks:
Which led income from leasing out oil tankers to drop:
And hurt the share price of global crude tanker operators amid attacks on Nigerian oil facilities.
"Several of the factors that have recently impacted the crude oil tanker market should normalize over the coming months," Frontline wrote in its second-quarter results statement this morning. "China and India are both expected to increase imports from the Atlantic Basin and in particular from West Africa once the production is back on stream."