ShippingWatch

Hafnia Management: OPEC deal could boost product tanker

Wednesday's OPEC output deal has triggered a significant climb in the oil price, and this is healthy for the market, Hafnia Management CEO Anders Engholm tells ShippingWatch. Especially for product tankers, he says. ABN Amro's shipping analyst projects rising spot rates in crude, but only on the short term.

OPEC' surprising deal to cut back the countries' oil output, the first deal in eight years and a move which has sent oil prices soaring by 5-6 percent overnight, could have a positive impact on rate developments in product tanker as the decision will boost trade activity in the oil market, Anders Engholm, CEO of Hafnia Management, tells ShippingWatch.

"We've been short on volatility in the oil price for the past six months, as the oil price has remained somewhat steady. This standstill has not exactly encouraged the trading houses to buy and sell oil. So we don't mind that the oil price increases a little, so we can get the volatility back. It'll be good for the market," says Anders Engholm who, like other operators and carriers in the market, has for the past six months experienced a setback in the tanker market for refined oil products - a market which has otherwise been viewed as one of the most promising sectors in the hard-pressed global shipping industry.

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