The volatility in charges for midsize tankers since Russia’s invasion of Ukraine will stay a relentless within the months to return because the market adjusts to disruptions in commerce flows, Teekay Tankers (NYSE:TNK) CEO Kevin MacKay mentioned on Thursday, S&P International Platts reviews.
“Since late February, the Aframax and Suezmax sectors had exhibited important charge volatility with charges averaging effectively above the depressed ranges seen earlier within the yr and all through 2021,” MacKay reportedly mentioned throughout the firm’s earnings convention name. “We count on this volatility to be an ongoing characteristic of the market within the close to time period.”
European crude imports have supported U.S. Gulf Coast exports, with the four-week transferring common for USGC crude export volumes within the interval ending Could 6 reaching 3.61M bbl/day, its highest stage since March 2020, in keeping with S&P International Platts.
Teekay (TNK) mentioned it sees midsize tanker ton-mile demand persevering with to profit from the shift in commerce flows as Europe seeks barrels from the USGC in addition to from West Africa and the Persian Gulf.
Teekay Tankers (TNK) rose almost 4% in Thursday’s buying and selling after reporting a Q1 adjusted lack of $0.41/share, smaller than a $0.65/share loss within the year-earlier quarter.