J Mintzmyer spoke with Frontline's CEO, Robert Hvide Macleod, last week about how the tanker market is shaping up amidst a lot of commodity price moves and investor interest.
Topics Covered
1:00 minute mark - What has changed in the market YTD compared to initial setups?
3:00 - Have we seen something like this in the market before?
4:30 - Preferable data source or metric for global storage balance?
6:30 - Discussion of ‘oil on water’ metric
10:30 - What is LR2 clean/dirty split? What is driving LR2 spike?
11:45 - What time charter offers are available in the markets?
15:00 - Fixtures available anywhere for FRO? Indexes accurate?
18:45 - Comments on Saudi flotilla? What happens if destinations change?
21:00 - How does cash payment flow work for spot vs. TC?
23:30 - Any concerns with CP risk? Precedent for this?
25:15 - Chance of shifting terms of spot market payment?
26:45 - Risk factor of ‘famine’ on the other side of the curve?
31:00 - IMO 2020: Spreads are down, will they come back?
36:30 - Capital allocation priorities now? Any newbuildings? Consolidation?
41:15 - Formally swearing off newbuilds? Yes!
42:30 - What is holding back the tanker stocks in these markets?
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