Shipping Lines are awaiting this week the decision of the members within the Organization of the Petrol Producing Countries (OPEC). On Wednesday the countries are supposed to decide on freezing the daily quantity to 32 M. barrels.
A principal decision on this freezing was taken about 2 months ago in Algier. Since then there is a tough negotiation between the members, considering Iran’s and Iraq’s refusal to undertake such a freezing
The decision was taken for a period of 6 months leading to an expected rate increase . This, after a remarkable reduction continuing already about two and a half years, causing considerable economic harm to these countries’ income. The price increase will lead to reduction in demand and hence a reduction in shipping companies’ income. It is to be noted that the Goldman – Sacks Bank is expecting that the cost of a barrel will go up to USD 55.00 during the first quarter of 2017 compared to today’s price of $45-50.
According to recent updates, the owners of the fuel tankers will register a daily profit of USD31000 during 2017. This is considered to be a lower evaluation by 15% compared to a similar expectation done during August 2016.
This year’s average profit is estimated to be USD 40000 daily, whereas in 2015 this data reached USD 68000