Oil floating storage

[Bilaal Nabi + 1]

From a surge in share prices to a collapse of circa 20%, oil tanker stocks have taken a beating over the last few days. This is primarily driven by oil production cuts, the US inventory report confirming that oil is filling up less than anticipated and Government discussions of lifting the lockdown. 
 

However, the current price of tanker stocks baffle me. These companies ie Euronav, TNK etc have been charging, and still are charging rates for their VLCC’s/ large ships  4 or 5 times more than they have ever before. The revenues, these companies will make, which will be reflected in Q2 results will be higher than ever reported. For that reason I would expect the share price to surge and remain at an all time high at least till the end of the year. 
 

The demand for oil will not outweigh the supply, we are all in lockdown, and once it is lifted people will not be going out and about as freely as they once did, not until next year at least. 
 

I would like to know everyone’s thoughts on oil tanker stocks, do we expect them to recover from the recent battering which they have taken?

 

thanks 

[Tom Kirkman + 8,860]

17 minutes ago, Bilaal Nabi said:

I would like to know everyone’s thoughts on oil tanker stocks, do we expect them to recover from the recent battering which they have taken?

Normally I am loathe to post links from The Motley Fool, but this paragraph seems about right:

Why Oil Tanker Stocks Are the Hottest Spot in Energy Today

To the contrary, comments from The Wall Street Journal (today), to the effect that "the world is awash with too much oil" and that "coronavirus lockdowns on driving, flying and industrial activity have all but eliminated the need for the stuff" suggest that even if stock prices of oil shipping companies are down today, the problem of where to store "too much oil" has not been solved -- and these stock prices will go right back up again in relatively short order.