1/ Will #RussianSanctions be a boon for tankers? Surging spot rates and tanker equities suggest yes.
If Europe chooses to buy elsewhere and a meaningful portion of crude from the Black Sea and Baltic goes to Asia instead, it will add huge ton miles.
If Europe chooses to buy elsewhere and a meaningful portion of crude from the Black Sea and Baltic goes to Asia instead, it will add huge ton miles.
2/ This changes things. Whereas tankers were looking like they wouldn't see profitable rates until Q3/4 at the earliest and the likelihood of very high rates was low, now it is entirely possible that tanker companies make huge profits in 2022.
3/ I have been an outspoken tanker bear over the past 18 months with a bullish outlook in the longer term.
Considering recent events, I am no longer on the sidelines. Many tanker equities already look expensive but I'm buying the bargains.
Considering recent events, I am no longer on the sidelines. Many tanker equities already look expensive but I'm buying the bargains.
https://twitter.com/AllVentured/status/1489795040377327620?s=20&t=ea1c2kzvOjevqV7d2olknw
4/ I started a large position in $TNP last week as I am expecting a catch up trade with the peer group.
Not only is $TNP cheap relative to peers, if rates and asset values really do go ballistic, its financial leverage will work in its favor similar to what happened with $DAC.
Not only is $TNP cheap relative to peers, if rates and asset values really do go ballistic, its financial leverage will work in its favor similar to what happened with $DAC.
5/ $TNP was also the last to move in 2019 during the COSCO sanctions, but ended up being the best performer in October on the catch up. If rates do indeed settle at profitable levels in March I expect a similar dynamic to play out.
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