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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (74582)	12/21/2023 2:50:57 PM
From: FIFO_kid2	1 Recommendation Recommended By Lance Bredvold Read Replies (2) \| Respond to of 78774

Bruin- I would be somewhat cautious with chasing momentum in the sector and aware of the risks that will kill the current cyclical rally. In the VLCC space one thing I would watch how many newbuilds are coming onto the entire sector that always seems to be the death knell of the profitability in the business. Both the VLCCs and to even much greater extent the clean tankers which are in even greater demand with STNG being a major player have benefited greatly from the logistics issues created by the Ukraine war. The mode of transportation from pipeline have been replaced by tankers which have allowed rates to rise. A decent sized percentage of European gasoline is now sourced from India with Russian crude so if that relationship is altered I would say that would be a major negative catalyst of the current positive fundamental drive in the sector.

To: bruwin who wrote (74582)	12/21/2023 2:56:13 PM
From: FIFO_kid2	Respond to of 78774

Bruin- I would be somewhat cautious with chasing momentum in the sector and aware of the risks that will kill the current cyclical rally. In the VLCC space one thing I would watch how many newbuilds are coming onto the entire sector that always seems to be the death knell of the profitability in the business. Both the VLCCs and to even much greater extent the clean tankers which are in even greater demand with STNG being a major player have benefited greatly from the logistic issues created by the Ukraine war. The mode of transportation from pipeline have been replaced by tankers which have allowed rates to rise. A decent sized percentage of European gasoline is now sourced from India with Russian crude so if that relationship is altered I would say that would be a major negative catalyst of the current positive fundamental drive in the sector.