(Dow Jones) A flagging economy and more domestic production is leading to decrease in US oil imports–bad news for tankers. Frontline (FRO) expects further increases in US output, which will likely hurt tanker demand, particularly that of very large crude carriers. While it’s looking for solutions, FRO calls the upcoming period “challenging.” Sterne Agee’s Salvatore Vitale tells Dow Jones that a big concern is reductions in longest-haul voyages between the Middle East and Europe. A weak VLCC market hurts not only FRO, but also Overseas Shipholding (OSG), which has pretty large VLCC fleet. It’s down 16% at $10.63 after earlier hitting a 26-year-low of $9.92. FRO tumbles 40% to $3.14, hitting a 9-year nadir, as it also warns of potential covenant breaches and funding needs.
– by Corrie Driebusch, Dow Jones Newswires
Sign up for gCaptain’s newsletter and never miss an update
Essential maritime and offshore news, insights, and updates delivered daily straight to your inbox
Norway's King Harald and Queen Sonja were visiting the main settlement on the strategically located Arctic archipelago of Svalbard on Monday, at a time of increased interest in the resource-rich polar region from the U.S., Russia and China.
Israel’s overnight airstrikes on Iran drove up freight rates and tanker stocks Friday as traders and investors priced in the prospect of disruption to a large swath of the global oil-shipping fleet.
Finnish prosecutors are considering pressing charges against three senior officers of an oil tanker suspected of damaging undersea power and telecommunications cables in the Baltic Sea in December, police and the prosecutor said on Friday.
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
