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Sliding oil prices send tanker demand and rates soaring

Eric Atkins

The Globe and Mail
Published Sunday, Sep. 06, 2015 5:19PM EDT

The crash in oil prices that sent the Canadian economy reeling has been a gift to the oil shipping business.

Demand and rates for tankers have soared in the wake of last summer’s 50-per-cent plunge in crude prices as the Organization of the Petroleum Exporting Countries boosted output and China stocked up on cheap oil.

Owners of the largest tankers raised daily rates to as much as $90,000, far above the $10,000 a day it costs an owner to pilot a ship laden with Mideastern crude to Asia. In 2012 and 2013, rates averaged about $25,000 a day.

[....]

Historically, the link is weak between crude prices and tanker rates, Mr. Wetherbee said. “The ships themselves are the commodity, not crude. It’s really supply and demand for ships that drives the rates,” he said by phone.

[....]

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/sliding-oil-prices-send-tanker-demand-and-rates-soaring/article26240438/

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