December 14th, 2018

OPEC Cuts

Demand headwind

OPEC, Russia and select other oil producers agreed last week to cut 1.2m b/d of crude production1 in the first half of 2019 from their October 2018 production baseline. The latest cuts are likely to hurt crude tanker demand over the first four to five months of 2019. We expect crude tonne-mile growth to flatline, the West to East crude arbs to work less frequently and a negative spillover for the clean product tankers.

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