But there isn't. The rig counts are down 50% and production is flat world wide. What that seems to imply is that there is simply plenty of oil in many places and that any rise in price can be met with an increase in production nearly at the drop of a hat.
Do the quarterly earnings really matter? They reflect old contracts that will expire in short order. What matters is what they see going forward. If they reveal a bunch of renegotiated contracts with lower day rates just to extend them a few more months, they are basically admitting they don't see any rebound for a couple of years yet to come. And in that time frame, they have some newbuilds to pay for and which need contracts.
According to Compass Maritime's latest weekly report, there are 57 VLCC's, the kind you discuss which carry 2 million barrels, on order for 2016. There are 24 on order for the balance of 2015. There are 5 Suezmaxes on the way this year, still, and 35 coming next year. Aframaxes, which carry about 500k bbl, look to add 41 still this year and 52 next.
It was thought in 2014, that the scrapping of mid-sized tankers, Suezies and Afras, that there would be no net fleet growth in 2015/16, however, the ordering intensified as slots became available and prices for new tankers came down some and some owners converted bulker orders and vessels into tankers. So it looks like a point or so of growth of the fleet is likely for both classes.
VLCCs are in for a little rougher time as the growth of that fleet will be in the neighborhood of 2.5% for 2015 when all is said and done and 4.5% for 2016. Rates will likely come down next year.
SHAK opened at $52.50. It was lower than that a couple days ago. Spiked to $90+ then cratered to less than half that and is just now trading back above first day open.
Yeah, he'll make up 25 look alike ID's and act like an idiot in an effort to bother you. Yes, you are a huge joke and a psychopathic impersonator who spends hours of his life trying to annoy others.
No, I made that ID long before the one I use now, it went dormant and like some sort of child, you signed up for it and now for some stupid reason, try to convince people you are me. Do you have no friends or any sort of life?
They don't get tax breaks. They are not Greek companies. You are still an idiot and a psychopathic impersonator.
You would certainly know about "fakes". You signed up for one of my old ID's after it had gone dormant.
They didn't take it down, the price of oil did.
Yep. I created it way back then when yahoo was acting up along with a couple others. You found it had gone dormant and was available and like some sort of psychopath, you signed up for it and several others similar to it and began trying to convince others that you are me. Pretty sick.
Do you understand how tiny and old their fleet is at this point? Do you understand there is a HUGE glut of drybulk haulers around the globe? FREE is a hot mess and they have very little future at all.
It is up because oil it up $2.00 today. Only reason. Earnings are going to have a lot of items that will cause concern. Lower rates, contracts that trade rates for duration and some idle time coming.