Frontline Sees Limited Effect on Demand From 'Balanced' OPEC Cut

November 29, 2016

* 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 Maritime Organization) regulations will require further investment and factor into scrapping decisions


* Says older tonnage is increasingly difficult and less profitable to trade

(Reporting by Ole Petter Skonnord)

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