The CEO of oil tanker operator Teekay Tankers stated that it expects a better first quarter than last year, echoing views of sector-bellwether Frontline that demand has picked up considerably in recent weeks.
Reuters highlights that the tanker market was hit hard last year, mainly due to oversupply, with average daily rates for smaller classes of vessels falling to a low of $4,400. Rates have quadrupled now.
"We follow pretty closely to the tanker market. This quarter rates in general have been up, and so we expect our rates to go up as well. We expect this quarter to be better than the first quarter last year," Teekay Tankers CEO Bruce Chan stated.
On Thursday, Frontline's CEO said demand has risen on surprisingly high activity from ships transporting oil to China. Teekay Tankers could also look at buying product tankers, which are used to move petrochemical from refineries, Reuters noted.
Teekay Tankers (TNK : NYSE : US$5.24), Net Change: 0.52, % Change: 11.02%, Volume: 4,088,679 Frontline (FRO : NYSE : US$7.65), Net Change: 1.47, % Change: 23.79%, Volume: 13,108,117