Tankers on Fire

With the USA cutting Russian oil imports and with the perspective of a come back of Iran, better times shine for tankers. The Scrap value is now close to the second hand value which should encourage the exit of the 20 years plus vessels. The order book is far lower than the number of ships to exit and with potentially, 10,000 new flights to be added (equivalent to 40 VLCC) and Iranian oil (50 VLCC), the demand for tankers should outpace the supply very soon unless a too high oil price puts the World in recession.

Germany has decided to do two LNG terminals and Europe wants to cut Russian gas by 2/3 by December 2022. This should also increase the demand for LNG tankers and terminals. GTT, Gaz Transport and Technology that already posted a nice rally still looks very attractive together with Flex LNG.