Maersk Tankers CEO: Product tanker recovery seeping

Large oil stockpiles and many newbuildings could cut the top of the product tanker recovery in 2016, estimates Maersk Tankers CEO Morten Engelstoft. Last week he delivered the best result in years for the tanker carrier and one of the few bright spots at the Maersk Group.

Photo: Maersk Tankers PR

The top of last year's significant product tanker recovery looks to be seeping slightly in early 2016 due to the many newbuildings being delivered to the global fleet, combined with the fact that oil stockpiles are at this point already filled to capacity, Maersk Tankers CEO Morten Engelstoft tells ShippingWatch.

"We expect that 2016 will be a solid year, but not quite on par with last year. There's no doubt that a continued low oil price still supports solid margins for the refineries, and this also increases the demand for oil products. These factors will continue to contribute to a solid market this year as well, and we're also seeing the possibility of growing demand for ships to be used as floating oil storages, even though we haven't experienced it yet," says Morten Engelstoft, who last week the best result from Maersk Tanks in years.

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