Dallas, Texas 06/26/2015 (Financialstrend) – Scorpio Tankers Inc. (NYSE:STNG) and peer oil-tanker companies are all set to gain from a season of increased output in crude oil. According to Wall Street Journal reports, analysts forecast that the market for oil-tankers is set to heat up. The analysts predict that the increase in output would also trigger a fall once again in crude oil prices.
Baltic Dirty Tanker Index
The Baltic Dirty Tanker Index, which gained by nearly 25% in past means that tanker companies will have good business this season. The Index tracking 16 routes that hired oil tankers travel rose rapidly, with the increase in traffic of these oil tankers.
Analysts at Credit Suisse believe that 2015 could well be the year for investors in the tanker sector. The analyst firm has been bullish about tanker operations companies as it believes tankers prices are likely to see an upside. Though the company does foresee certain dips in the middle of summer, it however declares that the winter season would be strong.
Scorpio Tankers Inc. (NYSE:STNG) and many of its peers are likely to see strong business opportunities as new deals are brokered with oil producing countries. As per the conference call with Dr. Feshraki of FGE (energy consultants) , Credit Suisse came to understand that a deal with Iran could lead to ‘elimination of oil sanctions’ or reduction in the sanctions. The additional benefits would also include new volume demand, estimated at 500 barrels per day by potential buyers.
Scorpio Tankers Inc. (NYSE:STNG) too is expected to be one of the beneficiaries with the lifting of sanctions. Six months after the sanctions are lifted there would be a supply of 700 barrels per day requirements. The stock was down by 1.37% in yesterday’s trading session and has given an yield of 19.60% in current year.