Marine Link
Saturday, January 20, 2018

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

Maritime Activity Reports, Inc.

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)

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News