Refinery maintenance season is over, the strike looks to be settled and refineries are going to be ramping up for Summer blend. The over supply is going to get tapped in the next few months. Once that happens, the most expensive storage (tankers) is going to be used first. The only thing holding crude prices down is the strength of the dollar.
I'm out. I suspect that FRO will have good numbers this coming quarter but their (and most tankers companies) entire business plan is skewed. The fact is petroleum users have closer sources than they have had in the recent past. Once the contango ends, and it will end, the tanker business will be back to looking at too many ships for the number of routes out there.
If you really want to invest in shipping, my suggestion is to look at the product side.
Getting a tax break for depreciation on any commodity reserve should be no more allowed than one on a shirnking bank account. Depreciation on capital expeditures to obtain those reserves is an entirely different matter.