March 2024 Tanker Market Update

Firm tanker rates in Q1-24 with expectations of continued strength in both the near and medium term
Spot tanker rates remained firm in the first quarter of 2024 due to a combination of positive supply and demand fundamentals and a number of geopolitical events which have led to increased voyage distances and higher tonne-mile demand. Fleet supply fundamentals continue to look very positive over the medium term, and we believe that the foundations are in place for continued strength in spot tanker rates over the next 2-3 years.

Watch Christian Waldegrave‘s monthly tanker market update for more.

Chapters:
0:05 Introduction
0:16 Q1-24 shaping up to be another strong quarter for spot tanker rates
0:25 Benchmark Tanker Spot Rates
0:49 Global economy showing signs of improvement
1:30 2024/2025 Oil Demand Growth Forecasts
1:53 1.3-1.4 mb/d of oil demand growth expected in 2024
2:05 2024/2025 Oil Demand Growth Forecasts
2:18 OPEC+ extending oil production cuts through Q2-24
2:51 Rising non-OPEC+ supply from the Americas is positive for tanker tonne-mile demand
3:06 Events impacting tanker trades are creating volatility in an already tight market
3:44 Vessels diverting via the Cape of Good Hope adding to tanker tonne-miles
4:10 Events impacting tanker trades are creating volatility in an already tight market
4:42 Reduced Russian refinery throughput could free up more crude oil for export
5:10 Events impacting tanker trades are creating volatility in an already tight market
5:53 TMX pipeline expansion could lead to 30-35 Aframax loadings per month once fully operational
6:05 Events impacting tanker trades are creating volatility in an already tight market
6:27 Tanker trade disruption should continue to support spot rates through 2024
6:53 Tanker newbuild orders
7:15 Tanker orderbook currently 8% of existing fleet size vs. long-term average of 20%
7:30 Tanker newbuild orders
8:10 Ship recycling expected to increase in the coming years
8:26 Total tanker fleet growth
8:54 Conclusion

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Forward Looking Statements

This content contains forward-looking statements which reflect the Company’s current views with respect to certain future events and performance, including statements regarding: tanker market fundamentals, including the balance of supply and demand in the tanker market, and spot tanker charter rates. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in spot market tanker rates; changes in the production of or demand for oil; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders or greater or less than expected level of tanker scrapping; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates and other factors discussed in Teekay Tankers’ filings from time to time with the United States Securities and Exchange Commission, including its most recent Annual Report on Form 20-F and subsequent Reports on Form 6-K for the quarterly periods ended thereafter. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.