Tanker companies rise as scramble for crude storage persists

Teekay Tankers

27/04/2020 14:29

** Shares of tanker operators up premarket, with Nordic
American Tanker  NAT.N  up 16.4% - among top percentage gainers
on NYSE-listed stocks
    ** The steep contango in brent crude prices will continue
due to COVID-19 demand destruction, which will further support
floating storage demand and tanker rates - Jefferies
    ** Last week Reuters reported https://reut.rs/2yLtDQH that
dozens of oil tanker vessels have been booked in recent days to
store at least 30 million barrels of jet fuel, gasoline and
diesel at sea
    ** Shares of other companies Teekay Tanker  TNK.N , Tsakos
Energy  TNP.N , Diamond S Shipping  DSSI.N  up between 7% - 9%
    ** Jefferies says although 2020 got off to a rocky start due
to seasonality and COVID-19, the crude oil tanker market is
likely to remain strong this year because of an oversupply of
crude, floating storage opportunities
    ** Says LNG shipping market should benefit from increasing
global LNG liquefaction capacity; LPG shipping market is likely
to continue to improve in the coming quarters, mainly because of
increasing US exports and decreasing shipyard deliveries
    ** Dry bulk shipping market will remain soft during H1 2020
before rebounding due to economic recovery in China, increasing
Brazilian exports, and very low fleet growth - brokerage

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext:
2776; Reuters Messaging:
arundhati.sarkar.thomsonreuters.com@reuters.net))