PANIC IN CRUDE TANKER MARKETS
What a week: Crude tanker stocks continued their strong performance and gained more than 20% w-o-w on average. Product tanker stocks followed swiftly with a plus of 'only' 14%. Even the long time underperforming LNG stocks jumped by more than 10% on average. The typhoon in Asia, scrubber retro fittings, Chinese sanctioned VLCCs and LNGCs, Iranian tanker attack and Venezuela sanctions came all together to form a 'perfect storm' for the oil & gas carrier markets.
The upcoming winter season and continued IMO 2020 anxiety completed the picture. VLCCs were reported to achieve TCEs of more than USD 300k per day. There are rumors in the market that an owner even canceled his scrubber docking to do an extra voyage, instead. The market for propane/butane carriers continued its strong gains, as well. TCE rates for VLGCs are currently above USD 70k per day, which means very healthy cash flow for the owners.
Our two trading strategies 'Calima' and the 'Notos Maritime Strategy Note' were able to achieve 14% and 9% w-o-w, respectively. Both strategies are overweight in LNG and LPG.
Our sentiment index is still well above the zero-line, indicating a continued positive environment for shipping stocks.