Opec+ hikes production yet again, buoying VLCC prospects
- Opec+ agrees to 411,000 bpd production increase for June, following 411,000 bpd production increase in May, accelerating wind-down of voluntary cuts
- Oil pricing is moving toward contango, which could incentivise inventory building and further increase demand for crude tankers
- Crude tanker stocks rose by 4%-5% on Monday in response to Opec+ announcement
Times are tough for ocean shipping, given macro pressure from Trump’s tariffs. But the VLCC segment has some specific upside drivers that could offset the headwinds, courtesy of rising Opec+ production and growing prospects for contango in oil pricing
