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