All those boats will get booked up by distressed producers hobbled by force majeure declarations. And there is no better refined product shipper in the world than Scorpio Tankers (NYSE: ).
In turn, that depletes the supply of available ships while demand continues to grow unabated. Ironically, the U.S. exemplifies both instances. that can’t find everyday consumers to buy them. Also, the price chart (below) is showing us an opportunity:Shares are trading in the mid-$16 range now – very near 52-week lows. And finally, certain refined product consumers (airlines, petrochemical manufacturers) will continue to hurt long into 2020.But there’s plenty of time to establish a beachhead on those shores…for now, we batten down the hatches. We’re gonna need a bigger boat. The parallel here is obviously the widely variant government responses to the COVID-19 pandemic. Phrase originaly used by well known actor Roy Scheider in the 1975 blockbuster 'Jaws'. Used in day to day life when a situation seems insurmountable. He utters the line when he gets a good look at the size of the shark that is circling the small fishing boat he is on. Écoutez We're Gonna Need a Bigger Boat par XV Kilist & Rocco sur Deezer.
I keep seeing this quote from the movie ‘Jaws’ pop up frequently in financial circles this year.I have read it in articles, chuckled at Twitter gifs, and I’m even starting to see it on mainstream social media networks. That causes shipping rates to move upward – a trend we are already seeing.Crude oil shipment and storage will primarily involve so-called Very Large Crude Carriers, or “VLCC’s,” as well as smaller tankers that can navigate the Suez Canal, or “Suezmaxes.”The best positioned company with that particular type of asset allocation is DHT Holdings (NYSE: The company owns about 15 VLCC’s and 11 smaller vessels, and the stock is trading at a little over $6 per share right now. But as a longtime financial analyst, I think there are some other themes that warrant further exploration.Specifically, there are a ton of similarities with the coronavirus outbreak circling the globe.Chief among them is the proper level of government response to crisis. that can’t find everyday consumers to buy them. And we’ll need a different fleet to carry and store all the refined products (diesel, jet fuel, gasoline, etc.) Rapid, comprehensive responses in Taiwan, Singapore, Japan, and South Korea slowed outbreaks. But the town’s mayor insists on keeping them open, as local businesses rely heavily on summer tourists.Hamstrung by the town’s executive branch, Chief Brody reluctantly accepts their course of action. In fact, the state issued no significant action until a stay-at-home order just a couple days ago.
Some mayors and governors acted quickly, but others waited too long.For instance, King County, WA, sheltered in place more than two weeks ago, and we are now beginning to see the daily pace of new infections slow.But states like Florida have been excruciatingly slow to act. The Brighton Port Authority is a project of British musician Norman Cook, better known as Fatboy Slim, and his long-time engineer, Simon Thornton. It’s certainly appropriate for the “Now, I’m a lifelong fan of the movie – after all, we were both “released” in 1975. Under current volatile market conditions, So, establish a 1/3 stake now, set a limit order at the $15 mark to pick up another 1/3 stake, and save the remaining dry powder to deploy laterFor instance, crude oil prices will likely decline. We’ll need one of them to carry and store all that crude oil that can’t find refiners to buy it. But after another death, he consults an oceanographer who not only confirms the initial incident was a shark attack, but also determines that it was specifically a Great White.Despite the expert advice, the mayor declares the beaches safe again after local fishermen catch a large Tiger Shark. In other words, consumption patterns have still not returned to normalIf that is still the case in China, you can bet those patterns will translate over to the rest of the world once we emerge from our stay-at-home ordersOn-road transport activity accounts for roughly 50% of global crude oil demand, or about 50 million barrels per day. Needless to say, Florida’s case load is accelerating.The truth is, data shows it takes drastic policy changes like shelter-in-place anywhere from two weeks (S. Korea, Taiwan, Washington State) toAnd because of that, we know for a fact the global economy will not be operating at anywhere near full capacity for at least that long… if not longer. But slow responses in China and Italy have caused the disease to spread rapidly. I Think We're Gonna Need a Bigger Boat is the debut album of British electronic act The Brighton Port Authority.It was released on Southern Fried on 6 January 2009 exclusively on amazon.com, with a regular release on 3 February.. We're either all the way left, or all the way right The only time we meet in the middle is to fight The rich get richer, the rest get a little more broke We're gonna need a bigger boat The floods down south, the fire's out west You turn on the news, scares you to death Give me that hammer, someone hold my coat Yeah, we're gonna need a bigger boat to the recent market downturn. A few states and municipalities have been aggressive, but many haven’t.