Oil Demand Forecast News

* Crude oil tanker firm Frontline says a potential "balanced cut and cap from OPEC", as suggested by some analysts, is not expected to have a large impact on the tanker market * Says significant volume cuts by OPEC, although unlikely, would be negative for tanker freight demand * Frontline says the winter season historically supports a strong tanker market, and that improvements in market likely into Q1 2017 * OPEC members are split over who should cut and by how much * Frontline says global oil demand forecast to increase by 1.2 million barrels per day in 2017 * Says resilient market despite oil output disruptions and high delivery pace of new vessels * 56 VLCCs and 67 Suezmax tankers are scheduled to be delivered by year-end 2017 * Expects new IMO (UNs International

Teekay Tankers Ltd. ·         Declared a cash dividend of $0.22 per share for the quarter ended December 31, 2010. ·         Reported fourth quarter adjusted net income of $2.6 million, or $0.05 per share (excluding specific items which increased GAAP net income by $5.2 million, or $0.10 per share). ·         Over 60 percent of fourth quarter revenue days earned average fixed time-charter rate of $24,390 per day; significantly above average spot TCE of $14,779 per day earned on remaining spot revenue days. ·         Completed acquisition of one Suezmax tanker and one Aframax tanker for a total cost of $107.5 million. ·         In January 2011, commenced a 23-month extension of an existing Suezmax tanker time-charter.

The global economy has shown some signs of recovery this past quarter. The Chinese economy is now widely expected to grow beyond 8% this year. Housing construction in the US rose in August to the highest level in nine months. Europe appears to be on track to exit the recession in the third quarter. In Singapore, the government has just revised its growth forecast for the economy upwards, to the range of minus 2.5% to minus 2% for 2009. Overall, although sustained recovery in private consumption and investment is still needed to support the positive momentum, there is a cautious optimism for modest growth in the near term. Against this backdrop, I am happy to report that Keppel Corporation has turned in yet another solid performance in the third quarter. PATMI for 3Q’09 grew 17% to $319m.

A new study of the worldwide prospects for offshore renewable energy recently commissioned by the U.K.’s Department of Trade & Industry from energy analysts, Douglas-Westwood Associates (DWA), has identified 77 proposed offshore wind power projects totaling over 13,000 MW of generating capacity. In the opening address to delegates at the second annual ‘All-Energy Opportunities’ conference in Aberdeen, DWA partner John Westwood stated that prospects on screen had increased from 22 in 2001, to 77 in 2002 - “a remarkable growth in such a short period”. DWA analyst Katharine Evans said that their models indicated that if realized these projects could require some 4,000 km of underwater power cables.