DNB Markets analysts in Oslo have raised their forecasts for product tanker freight rates and vessel valuation to reflect the continuing benign trading environment, in this article.
“We have increased 2015e MR spot rates to USD22,000/day (USD18,000/day in the previous estimate). For 2016-2017, we have lifted our estimates to USD20,000/day (from USD18,000/day and USD19,000/day, respectively). Similar changes apply to our LR segment estimates,” they said.
“We have also increased our asset price forecasts. Product tanker second-hand prices are up by an average of circa 5% since March and we continue to see 6% to 24% additional upside for second-hand values in the LR segments and 8% to 15% upside potential on MR values, depending on the age of the vessels, looking one year ahead,” they concluded.