Solid fundamentals for Frontline after being oversold
Updated
Many people thought that the tankers business would suffer, but it's the opposite that happened, because tankers not only deliver oil relatively to a global oil demand (that suffered for sure), but they also STORE. And this is not free.
Companies like Frontline were payed to store the global surplus:
seatrade-maritime.com/tankers/awful-energy-day…unless-you-are-tanker-owner
cnbc.com/2020/04/24/we-are-making-a-lot-of-money-at-this-time-nordic-american-tankers-ceo-says.html
On the other side, we have some encouraging data regarding the demand for tankers:
seatrade-maritime.com/tankers/tanker-market-surge-time-its-real-frontline-ceo
All of this explains the big surge in volatility and volume these last months, and ups and down that were about 40%!
Companies like Frontline were payed to store the global surplus:
seatrade-maritime.com/tankers/awful-energy-day…unless-you-are-tanker-owner
cnbc.com/2020/04/24/we-are-making-a-lot-of-money-at-this-time-nordic-american-tankers-ceo-says.html
On the other side, we have some encouraging data regarding the demand for tankers:
seatrade-maritime.com/tankers/tanker-market-surge-time-its-real-frontline-ceo
All of this explains the big surge in volatility and volume these last months, and ups and down that were about 40%!
Comment
No financial advice given hereComment
(talking about "surplus" in the context of COVID-19 oil demand crisis)*(19/05/2020)
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