Share: It feels a bit like someone stole our clothes while we were enjoying a swim, mused the analyst team at Fearnleys. They were quoting a political saying and referring to what just went down in the tanker market.
For very large crude carriers (VLCCs, tankers that carry 2 million barrels of crude), 2021 started out with hope in the air. Crude-tanker stocks including
Euronav (NYSE: EURN) and
Frontline (NYSE: FRO) rose on the first few trading days of the year. Tanker stocks certainly caught a bid, said Jefferies analyst Randy Giveans of the earlier tanker stock gains.
Then Saudi Arabia announced Tuesday that it would unilaterally cut crude production by 1 million barrels per day (b/d) in February and March.