Increase in OPEC Production, Tanker Operators To Gain

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  • Tanker operators are set to gain from OPEC’s recent decision to increase production, according to shipbroker Gibson.
  • Gibson believes the main force driving demand will be the path of the pandemic and with many Western economies putting their vaccination programmes to the test.
  • The next few months will be key in determining whether higher vaccination rates can fend against renewed movement controls.

A Riviera news source says that tanker rates to benefit from OPEC’s increased production.

What does the latest Gibson report state?

In its latest report, Gibson noted the OPEC+ alliance has settled on an agreement to manage supply. “The disagreement centred on production baselines from which OPEC+ cuts were assessed, with the United Arab Emirates (UAE) feeling its baseline had been set too low and demanding an increase, with a compromise eventually found.”

OPEC+ will now add an extra 400,000 b/d each month from August to December ramping up output by about 2M b/d in total by the end of the year.

Those monthly production increases will continue next year, with OPEC+ saying it has extended the deal until December 2022 from April 2022.

Other factors driving supply

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Source: Riviera