With investors experiencing a massive upside in earnings as well as stock returns in container and dry bulk shipping, expectations have risen to similar levels for tanker shipping as well. However, unlike container and dry bulk sectors the story for tanker shipping has been marred by several factors, with demand being the primary factor.
Global oil demand surpassed 100 mbpd in 2H19 before plunging by 9% to an annual average of 90.80 mbpd in 2020 due to the pandemic-linked demand destruction in 2Q20. OPEC’s latest report forecasts demand growth of 5.95 mbpd for 2021 followed by another 3.28 mbpd next year, effectively restoring the lost demand by 4Q22.
