Teekay Tankers Ltd (TNK)

[conversekidz]

UPDATE 1-U.S. tanker industry sets sail for better times - Dahlman
10:50AM ET on Wednesday Mar 28, 2012 by Thomson Reuters
March 28 (Reuters) - U.S. tanker market may set sail for better times as fewer new builds ease excess supply and rates pick up, Dahlman Rose said and upgraded key players such as Frontline Ltd and Overseas Shipholding Group Inc .

"The overall crude tanker fleet is set to grow 9.3 percent on a gross basis during 2012, then...to grow 6.8 percent in 2013 and marginally thereafter," Dahlman said in a note to clients.

Tanker oversupply will start subsiding in 2013 and the market will be in balance in 2014, the brokerage said.

The brokerage said spot prices would go up this summer ahead of a European embargo of Iranian crude.

"Saudi Arabia has already begun boosting exports of crude oil ahead of the planned European embargo of Iranian supplies beginning July 1," Dahlman said.

Possible sanctions would force Iran to hire tankers for floating storage for the produce it is unable to immediately export, the brokerage added.

It upgraded Frontline and Overseas Shipholding Group citing their exposure to very large crude carriers. The brokerage upgraded six other tanker players including Teekay Tankers Ltd and Nordic American Tanker Ltd.

Frontline shares were trading up 12 percent, while Overseas Shipholding shares were up 6 percent at $12.43 on Wednesday on the New York Stock Exchange. (Reporting by Durba Ghosh in Bangalore; Editing by Don Sebastian)


https://research.tdwaterhouse.ca/research/public/Markets/CommoditiesNews?documentKey=1314-L3E8ES6QD-1