CNBC: The Booming Business of Oil Tankers

21 Sep 2015: “‘China is a significant driver for tanker demand given its place as an oil importer,’ said Erik Broekhuizen, head of tanker research and consulting at Poten & Partners, a brokerage and consulting firm specializing in energy and maritime transportation. ‘As the U.S. has consumed less imported crude due to the shale oil boom now, that crude from West Africa or South America is going to Asia.‘ “…There’s another positive for the global fleet: Cheaper oil drives up demand, but it also drives down fuel costs. Like other modes of transportation, fuel is a top expense for ship operators, and the current cheap fuel environment has translated into a tailwind for earnings. “‘With the significant decline in oil prices, if growth rates stay pretty much the same, the ship owner is much more profitable,’ said Broekhuizen. ‘When oil was $100 last summer bunker prices were close to $700 per metric ton. Now it’s closer to $250.'”