Why did tankers drop so hard? I know it will recover but seriously...

Tanker prices based on actual supply and demand while oil and stock prices are based on speculative frenzies (until the day when oil contracts are settled)?

lockdown is already expected to end in early may. Storage is expected to be full end of May to mid june. Any action taken now is too late to do anything. Its a waiting game to see if the tanker case plays out.

They ALL have shitty fundamentals and storage is full so their services won't be needed for quite a while. Tankers will not be used for storage as there are more economical alternatives.

Never believed that tankers could explode in stonks price.
They usually optimize their storages to the normal production, during an emergency there's no time to build new ones.

Traffic jam situation user, think of how a car accident that lasts 1 hour can cause 10 hours of traffic. The people who bought oil for cheap start using it next month (best case scenario) that means they aren't buying next months oil, so next months oil starts dropping in price, at the end of next month when they've used up their oil supply they'll start buying the now cheap oil and use that the month after. So an oil price recovery won't be V shaped, it'll be like a stepladder of incremental rises as each month the price goes up a bit.

Yes, definitely it won't be a V recovery, price could stay around 22-30 range for long.
At the moment it still needs to get out from the dead cat zone, this means it can go back to 0 again.

because there are thousands of them sitting off the coast losing 30k a day

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Aren’t the tankers making 30k per day where as the oil companies are losing 30k per day?

yes

Because production is being cut. You must be a nigger if you can’t understand how to see foreseeable events.

>Tankers will not be used for storage as there are more economical alternatives.
Like what?

>because there are thousands of them sitting off the coast losing 30k a day
The tankers are the ones making 30k a day!
While having almost not expenses because they aren't spending money on fuel.

Actually, it's not even 30k, since tankers raise their rates to double and triple.

The earnings report will be massive this may

I worked on a few tankers. Money was good and job was fairly simple but the rules and regulations are killer. Also, shitty ports and constant threat of benzene. Would not recommend

Yesterdays drop looked a lot like an accumulation play, saw that shit all the time in crypto. Weak hands shakeout before another run up, by whales who know they can force major swings on small caps. The retail investors / robinhood scrubs get BTFO, sucks for them but that's how the game has always played.
Yep, We're still on track for oilmageddon in May-June. Probably when that saudi fleet shows up, the geopol / optics mean they'll want to blame someone- either faceless arab oil traders, or Trump for not "turning them away", probably both. (he can't really control where they go, plus they're under contract). Q1 earnings will turn some screws in the quants / hedge funds and probably start the big run up in the tanker segment; Q2 earnings will be even better. How this isn't priced in already is beyond me, since companies like TNP, TK, and others with good spot coverage might literally make market cap in a single quarter.
If you ever read livermores book "Memoirs of a stock operator", give it a read- the rules are different today but how he played sentiment trades is spot on today, and so is market irrationality. IMO the tanker play *will* happen, we just need to patiently wait for the ship to come in (lol). It's an obvious enough play that everyone will want a piece of it in the days to come, once some catalyst event kicks it off (could be earnings, negative oil... anything).

what like burn it? have an 'oil spill'? Stick it in that cavern you call a head?

Thanks user. That's some real valuable insight you have there. When do you think tanker stocks will be priced in?

Stupid prediction:
> Tankers start to report awesome Q1 earnings and go up a little.
> Saudi tankers come in. Oh noes, the tanks are also full! coincidence.jpg
> WTI June crashes to $-50, free oil memes and bankrupt shale abounds
> Energy sector dragdown kicks off overdue round of correction selling in markets
> Bad news, unemployment, unhappy people, "lockdown ended, my job is gone!". Crying hungry babies on CNN from Detroit.
> Jerome money printer go brrr, reactionary US admin has energy sector bailout + $2000 stimulus checks for 6 months.
> 2nd wave of shorter lockdowns because 2nd wave of virus outbreak hits and destroys demand AGAIN.
> Cramer moos on TV about tankers and CNBC dedicates entire days explaining oil to normies
> Tankers seen as safe energy sector play and TNP moons to $50 by July
I'm half joking writing that, but none of those things are impossible, and that's... something.
>Price targets
Hard to say, we live in clown world after all. 2x is likely conservative, My "gut feeling" says wait it out and we'll see 4-10x in market segment. I'm assuming very irrational markets, and crypto like FOMO by the retail crowd if the segment takes off. Your job as a trader is to take profit in the markets, and even if you miss the top, any green is good green. I would personally try to exit around July-August, and Q2 earnings but depending on world conditions this could continue into Q3. I know options premiums are getting expensive in tankers now, but even if you hold the fundamental you could make profit.

Why the hell are the Saudis dumping oil anyways? Is there any chance the tanker can go back to the KSA?

Oil price war with Russia never really ended; but they're taking advantage of the crisis to temporarily kill off US shale production. This lets Saud be the dominant global energy player again. They know it's not forever, but it's geopolitical leverage they'd be dumb to ignore. With prices low, US shale isn't profitable, and will force bankruptcies / reorganization in that sector here.
10-20 years out, electric cars are going to be a lot more common and no one is going to want ME oil like they did in the past. Oil is never going away (It's used to make chemicals, plastics, all kinds of useful stuff!); but demand will be much reduced.

Thank you so much user. I'm new to stocks. I'm glad I got alot of good advice from you.

Because the price was just right. Few days ago I told everyone NOT to invest in tankers at the current rate.
The price was right, people who bought in april were too late to the party.

Not going to repeat everything I said on the previous tanker thread, but the bottom-line is: don't invest in the shipping industry if you are not active in the sector; it is an opaque market so outsiders get little information.

(My family is in the Shipping industry, albeit cargo not tankers)

> Take profit when you can.
> Don't YOLO more than you're willing to 100% lose
> Don't hold things forever. If it went up fast, it can go down fast too.
> Your emotions WILL screw you over with trading. It's a hard game even for pros.
I'm not a pro by any means, and don't believe anyone who says they are here. And seriously, give "Memoirs of a Stock Operator" a read. It's free on archive.org; it won't help with understanding options better but will a lot with market sentiment and how emotions can influence stocks. Same stuff is true today even with all our cool technology.

Tankers didn't really move much until the 17th, when CNBC first started talking about them. Option entrys were amazing until then. You're right it's opaque, but so are the algos which play with this stuff.