Product tanker rates hold firm as geopolitical uncertainty remains high
- Both Scorpio and Ardmore see stronger-than-expected rates during the typically slow summer period
- Baltic Exchange’s LR2 Middle East Gulf-Japan index is up 58% vs July low; MR/handymax Atlantic basket is up 53%
- Scorpio sticks to ‘conservative’ capital-allocation strategy amid geopolitical uncertainty, while both Scorpio and Ardmore see potential upside from heightened Russia pressure
Product tanker owners are having a better summer than their crude tanker counterparts. Fundamentals are solid, but broader strategic changes remain constrained by ongoing macro and geopolitical uncertainty
