Out of Sync

1 Jul 2016:  Some days ago we received a request to look into the relationship between tanker rates and oil prices. It seems logical that the two markets are related as tanker rates are driven by the volume of oil that is being moved and the distance between the producer and the consumer. As oil prices are mainly determined by supply and demand of oil, the connection between the two makes intuitive sense. However, looking at the data shows an odd development. The relationship works until about 2010 but the two markets seem to have a negative correlation thereafter. The question is now, why did this happen and is this the new normal or will it reverse again? Download Here