Shipping Magnate John Fredriksen Concerned about China
The turmoil spreading from China is certainly not good for the shipping market, says billionaire John Fredriksen to Bloomberg News.
John, the billionaire who made his fortune investing in crude tankers, said he’s “very worried” on global shipping markets. Rigg is also very difficult due to oil prices and overcapacity, he said.
Oil touched the lowest levels since 2009 on Monday. “For our situation it’s good for our tankers,” he said. “But for our oil rigs it’s negative.”
The drilling rig market is facing lower demand from oil producers after crude prices collapsed last year. The decline in demand comes as new rigs enter the market, boosting oversupply after a decade of rising offshore investments.
More than $5 trillion has been erased from the value of stocks worldwide since China’s surprise devaluation of the yuan Aug. 11, which deepened concerns over the state of the world’s second-biggest economy.
