Tanker Market Shaping Up Amidst Commodity Price Moves: Podcast


  • Value Investor’s Edge Live hosted Frontline’s CEO to get the latest ‘on the ground’ (on the water?) viewpoint in the tanker markets.
  • CEO Robert MacLeod reviewed the VLCC, Suezmax, and LR2 markets and Frontline’s positioning.
  • We discussed spot vs. charter economics, floating storage metrics, and the potential longevity of these rates.

A recently published podcast by the Seeking Alpha gives a glimpse about the tanker market. 

J Mintzmyer spoke with Frontline’s (FRO) CEO Robert Hvide Macleod last week on Value Investor’s Edge about how the tanker market is shaping up amidst a lot of commodity price moves and investor interest. Click play above to listen, and watch out for the transcript tomorrow.

Topics Covered

1:00 minute mark – What has changed in the market YTD compared to initial setups?

3:00 – Have we seen something like this in the market before?

4:30 – Preferable data source or metric for global storage balance?

6:30 – Discussion of ‘oil on water’ metric

10:30 – What is LR2 clean/dirty split? What is driving LR2 spike?

11:45 – What time charter offers are available in the markets?

15:00 – Fixtures available anywhere for FRO? Indexes accurate?

18:45 – Comments on Saudi flotilla? What happens if destinations change?

21:00 – How does cash payment flow work for spot vs. TC?

23:30 – Any concerns with CP risk? Precedent for this?

25:15 – Chance of shifting terms of spot market payment?

26:45 – Risk factor of ‘famine’ on the other side of the curve?

31:00 – IMO 2020: Spreads are down, will they come back?

36:30 – Capital allocation priorities now? Any newbuildings? Consolidation?

41:15 – Formally swearing off newbuilds? Yes!

42:30 – What is holding back the tanker stocks in these markets?

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Source: Seeking Alpha


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