Oil-Tanker Rates Crash as OPEC+ Cuts Near
- Amount of cargo to drop, storage demand expected to stay high
- OPEC+ will remove almost 10% of global output from Friday
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Oil tanker rates are crashing as a pact to limit global crude production begins. Don’t bet on the rout enduring.
From today, crude producers in the OPEC+ alliance are cutting their collective output by a level that’s unprecedented in history -- almost 10% of global consumption. Normally, such huge curbs would have destroyed the tanker market almost as soon as they were announced a few weeks ago, as a dogfight broke out for a fast-diminishing pool of cargoes. But these aren’t normal times.