Oil tanker firms slide as OPEC+ output cut fuels demand worries

Nordic American Tankers

03/04/2023 16:48

** Shares of oil tanker companies slide after a surprise announcement by OPEC+ to cut more
production jolted markets
    ** As per four analysts, the OPEC cut spells bad news for tanker companies as less
production would mean less export and depressed demand for tankers
    ** (Oil tanker) stocks are reacting to the OPEC news and the reason is simple, less OPEC
production means less crude to carry, which in turn means lower tanker demand - Evercore ISI
analyst Jonathan Chappell
    ** Ardmore Shipping Corp  ASC.N , International Seaways  INSW.N , DHT Holdings Inc  DHT.N ,
Teekay Tankers  TNK.N , Nordic American Tankers  NAT.N , down between 4% and 10.5%
    ** Stifel analyst Ben Nolan said tankers markets are volume driven businesses, and OPEC+
cutting volumes is not good for business
    ** Adding that from a longer-term standpoint, higher oil prices could encourage an
acceleration of fuel switching
    ** Goldman Sachs has lowered its end-2023 production forecast for OPEC+ by 1.1 million bpd

 (Reporting by Muhammed Husain in Bengaluru)
 ((Muhammed.Husain@thomsonreuters.com;))