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RE: Update2 – (BN) Speculators Morgan Stanley/Citigroup Seek Supertanker store Crude

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#6326

Charles Randall
Participant

Supertanker capacity has actually decreased because of all the single hulled vessels that were forced out of operation. But the new double hull replacements were larger & faster so some of difference in vessel numbers was countered. The market seemed tight enough before demand collapse that PDVSA/Chavez had fleet built for moving the heavy crude into China to minimized the freight exposure (crude was backed out by US past partners like ExxonMobil & ect). And freight market is tight enough that it reacts to supply & demand volume changes rather quickly  – market should notice a stablization to increase in prices as result of this speculators scheme.
 
Somehow these guys seem live under lucky stars & all the reduced demand and crude / product oversupply has put a lot of slack & empty vessels back into the system.  All the producers keep cutting back on volume trying to get prices to flatten out or rise – the thing that neither they or Speculators seem to understand yet is this is a PRODUCT demand driven reduction not CRUDE supply driven cycle and until economy corrects they are going to continue to play catch up on cutbacks and prices are going to stay in the tank. <Market dipped below $33/Bbl Friday>.
 
 
 

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