Reuters: Oil Tanker Market to Stay in Doldrums in 2009

“A crude oil rally above $60 will not provide much comfort for the oil tanker market as weak global demand and a growing fleet of vessels will dog hopes of a recovery in seaborne freight rates” writes Reuters.  “‘Many are looking to the prospects of cancellations as a panacea for the impending oversupply situation,’ ship broker Poten & Partners said in a report. ‘Regardless of whether owners explicitly cancel their contracts, the overwhelming majority of the ships on order will likely find a way into the market.”