March 12, 2014 2:12 pm
Oil tankers: hull yes
After a horrendous period of oversupply, demand has turned buoyant
After a horrendous period of oversupply, demand for oil tankers has turned, well, buoyant. At the end of last year, day rates for very large crude carriers, the benchmark for long haul shipments, were 80 per cent below their peak in late 2007. They have since taken back a small fraction of the decline.
One reason for optimism on tanker demand is the situation in the Atlantic basin. True, less light west African crude oil now ships to the US as domestic production from shale increases. But more west African crude now goes to China, which, despite a softening economy, recorded its highest oil imports during January and February (US Gulf Coast refineries still require heavier Arabian crudes).
Meanwhile, after years of growth in the crude tanker fleet, the launches suddenly stopped. New build orders fell from the equivalent of nearly half of the fleet in September 2008 to just 14 per cent today. Deliveries are growing at the slowest pace (net of removals) since 2001. And ships ordered today will not arrive until 2016.
No surprise, then, that the soggy second-hand market has sprung back to the surface. The price of a five-year-old VLCC has jumped by a third in six months. The surge may continue. Since 1999, used VLCC vessel values have averaged 83 per cent of new builds. Today the
Yup the -8% BDI drop today was a real shocker and evidence that China slowdown is real and tangible. More than likely the BDI Index will continue to fall now and DRYS may fall under $3 again in a week.
God help us all.
No one expected China slowdown has been so violent and dramatic with commodities plummeting.
Few people realized until recently, Oct-Dec BDI Index was 1600-2300 (whereas Jan-February this year has averaged just 1300) because the Chinese companies were STOCKPILING and over shipping in case the government shut the credit spigot.
All news show the ports or stockpiled with all commodities that the Chinese have to work off so news reports predict less shipping in the near-term months. Just GOOGLE that for yourself to see.
I believe if he will remain silent just one day, the stock will move up. But only if he won't predict the price because he always destroys the stock by doing so.
I tell you it is "Grayold_man" and his predictions. Look at every prediction he does and it just destroys the stock when he does it. Look at his entire history and you will see yourself.
grayold_man • Mar 6, 2014 8:33 PM Flag
Bad job# it'll go $4.25, bad job #, she will go to $4.25
Now you know why the stock was over 100 and then touched $1.50 range for two years. GE, the CEO diluted from 30 million shares to some 440 million shares now.
Look at the chart to know pretty much everyone has lost money on this company. They won't admit it but they have.
Look at his post on March 6 and look at the stock price exactly posted. Do you notice it fell every day March 6, close the low of the day after he posted this $4.25, then March 7 it fell, then March 10 it fell, March 11th it fell, and today March 12th it fell again -3.5%.
I tell you this guy is evil incarnate. I don't know how he has the power to jinx this stock. He doesn't even mention charts anymore.
Notice he never knows to go bottom fishing.
No MAS, No MAS. You are too powerful. Whenever you product a higher price like you did here on March 6 for $4.25 the enter stock craters exactly day after day. Please, we surrender. NO more killing this stock. Like you did for the $3.95 consolidation and for 10 days it fell until it touched $3.15. Please STOP KILLING THIS STOCK.
Wish everyone to do well.
Will this drop to under $3 soon? The drop today of the BDI Index of over -8% or 127 points really shocked everyone. Usually when it falls this much it continues falling the next day.
Well, I have been saying it would go down ever since the $18 peak in December and it is $9.30 now. It's like that other guy who bragged buying at $13 range 2 months ago when it was up a couple of days.
You can't be 100% every single hour or day. Come back in 2 weeks to seek if WLT is near $8 or not.
All the dry bulk shipping companies are down big.
Remember how bad his predictions are. Remember the "$3.95 consolidation" about 1.5 months ago and the stock goes to $3.15.
Well, he did it again. Look at this post from March 6 and down every single day from his prediction. EVERY SINGLE DAY. Just like when he did that prediction about $3.95 consolidation back in mid February.
How he does this, I don't know. I think he is a witch with evil spell.