This is the week that if we don’t see positive momentum in the tanker sector then you better be long or gone because we are in for a rough ride on a limp dick sideways.
Here’s the factors:
1) The Oil Futures Bill is due – okay so those retards in April surely learned their lesson and won’t be gambling on holding the futures bag up until delivery day right!? Their mom said they won’t let them store another 1000 barrels in her basement again and really wish they would get a real job. These definitely learned their lesson.
2) OPEC+ Production reduction junction- oh yeah these oil leveraged are cutting production. You know what they aren’t cutting? Their exports and who loves exports? Tanker bro’s do
3) VLCC Spot Rates – Spot rate speculation has been the main factor in stocks going down 2H is pessimistic from a market perspective. However while LR/Afra rates have been going down VLCC rates have held a strong floor for 56k. THAT IS STILL MORE THAN DOIBLE THE INDUSTRY AVERAGE RATE. So what companies are benefiting from that? $DHT $EURN $FRO
4) NAT Earnings Call – I don’t even know what to think of this shit show but if for some reason they do well and all those FOMO come back we may see another short squeeze and if that happens then take your tendies and GET OUT. Unless you’re long dong Johnson on Q2-4 like me.
5) EURN Holders are voting on May 20th to approve a 10% buyback
Edit 6) Oh yeah 20% of the world fleet will be stuck storing oil at sea for quite some time. This will lower the supply of ships available to transport oil. Which will help bolster the spot rates and increase Tanker revenue again.
TLDR; A LOT OF SHIT IS GOING DOWN THIS WEEK FOR TANKERS. PARTY BOAT IS LEAVING PORT MONDAY AT OPEN.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.