Why Is This

As tanker owners, we know what happens when demand gets ahead of supply– tanker rates go up and they go up a lot. Right now Vlcc rates are at a historically high WS 220 AG/East. The oil industry is experiencing the same phenomenon of demand getting ahead of supply with current oil prices hovering close to $55 per barrel. Speculators are anticipating higher prices, as they correctly had for the past six months as seen by the growing open interest of crude oil futures.