Shipping analysts estimated that the freight market for oil tankers will record a long-term upward rally.
Greek shipowners have made significant investments in the market over the last two years, placing orders mainly for LR2 tankers in shipyards primarily in China.
According to a report by Clarksons, charters for modern LR2 tankers in the spot market rose by 16% in the last week to $41,000 a day. LR1 and MR tankers reached about $36,000 per day.
Analysts pointed out that the European market shows that fares will continue their upward trend. “Low diesel inventories, combined with increased prices, are a direct indication of a possible tight supply chain.
Historically such a scenario leads to increased demand for the transportation of petroleum products, boosting freight rates,” Clarksons explained.
According to Argus, summer inventories in Europe are lower than usual due to unexpected refinery shutdowns and a tight Asian market disrupted by the European Union’s ban on Russian oil imports.
Mid-size distillate stocks in Europe are 18% below pre-2021 levels.
Europe’s imports are expected to be covered, according to Clarksons, by distant regions such as the Middle East, India and the US Gulf, which will increase tons-miles.
At the same time, demand for oil increases during the winter, contributing to the positive sentiment for the market. Analysts also cited strikes by workers at liquefied natural gas (LNG) facilities in Australia as a likely additional positive factor.
“Any disruption in the natural gas market could benefit product tankers, as diesel cargoes can be alternative sources of energy,” they noted.
