Back to the Future

In the past six months, crude oil prices have fluctuated between $50 and $80 per barrel. This price volatility serves as a demonstration of the impact geopolitical tensions can have on oil prices. At present, demand for oil is high: thus demand for tonnage is high and VLCC rates in the past week have been on the rise. With the Israeli-Lebanese conflict quickly escalating, the question today is whether we are again on the brink of a Middle East crisis, and what the implications might be for the tanker market.