As oil tumbles, marine fuel gets cheaper — and so do tanker stocks

Russia — one of the world’s top energy providers — is mired in war. The OPEC cartel is cutting production. And yet, oil prices continue to tumble, weighed by global recession fears and concerns on Chinese demand.

For ocean shipping, this translates into cheaper marine fuel costs, a positive for operating margins, and much narrower fuel spreads, a negative for owners of vessels with exhaust gas scrubbers.

For listed tanker owners, the drop in oil prices is coinciding with faltering sentiment and falling share prices at the very time vessel supply fundamentals point to a sustainable rate rebound.

View entirety: Freightwaves