TANKER STOCKS FALL SHARPLY
Share prices of tanker companies lost more than 23% m-o-m. The novel coronavirus has caused growing concerns about a sharp reduction in oil demand from the air- and land-transport in Asia. The latest estimates published by news agencies range between 250k bpd and 1,000k bpd lower oil demand for the foreseeable future.
Furthermore, it seems that the US sanctions on part of the Cosco VLCC fleet have been lifted which may re-add 20 vessels to the global VLCC fleet. Crude tanker stocks are now trading at around 0.8x NAV, again.