With Chinese real estate buying 20% of the world copper and between 5-15% of steel, nickel, aluminium, a failure of the $300 billion indebted Evergrande could have a large impact on Chinese commodities demand and on the bulk carriers… Time to take some profit and buy a ticket to the Tanker party which is just starting. We have the ideal cast on scene: shrinking tonnage, Oil inventories below the low of the five years average and the US DOE have been decreasing for four weeks, a requisite for more oil on water. Should the shortage of gas continues, power plants could turn to fuel and diesel. A cold winter will be the ideal for oil equities not for CO2 emissions.
With the US re opening, jet fuel inventories are likely to start falling… The last piece of the puzzle! Chinese refiners are becoming more active and India has increased its imports by 0.7 million barrels a day. Time to buy the tankers indeed