Cancellation of production cuts boosts the tanker market
OPEC+ surprised the market this week by announcing an increase in production of 411,000 barrels per day for May, significantly exceeding the expected 135,000 b/d. The group is speeding up its plan to lift previous production cuts in response to stronger demand and potential supply risks from sanctioned countries.
Busy and profitable times ahead
This is a clear benefit for the tanker market. Increased production means more oil flowing along global trade routes, particularly towards Asia, which supports the demand for tankers and ton-miles. With the current limited supply of compliant ships and few new deliveries, this additional volume is timely and could help sustain high freight rates.
Source: Reuters