Bloomberg TV: Lower oil price is good news as it means more demand for oil and transportation
On 10 August CEO Paddy Rodgers was invited to discuss the current tanker market on Bloomberg television.
Paddy Rodgers explained that the lower price of oil is not a bad thing for Euronav’s business as it should stimulate demand, as long as it stays under USD 80 per barrel and doesn’t go too low. Although the market is a bit oversupplied the demand for oil is good. Also, the seasonality effect of the summer means that Euronav is going through a difficult path. Scrapping is indeed necessary but the fleet is relatively young due to the change to double hull vessels a couple of years ago. The average age of a ship when sent to scrapping is between 18 and 22 years: 18 when the market is low, 22 when the market is very good. About 100 VLCCs or 6% of the global world fleet is coming in that zone for potential scrapping between now and 2020.
Please follow this link to watch the complete interview.
|Title||Bloomberg TV: Lower oil price is good news as it means more demand for oil and transportation|