Its brighter view came with a caveat as analyst Mike Webber urged investors to “ignore the pom-poms and focus on quality”.
In a report on Tuesday Webber raised his 2015 VLCC rate projection by 14% to $50,000 per day.
He also added 9% to his suezmax forecast, increasing his guidance to $40,200 per day.
Webber says he expects the present favourable conditions in the tanker market to last into next year.
“However, while investors are increasingly being asked to believe in tanker markets, we think prudence, rather than believing in belief, is important,” Webber wrote in a report today.
He explained: “This is not 2005-2008, cycles are narrower, risk tolerance is shorter, and the idea of believing in smart capital allocation decisions from every owner (particularly at this point in the cycle) seems a bit foolhardy.”
Tanker stocks have spiked by a third since the fourth quarter of last year, measured against a 2.8% climb in the S&P index, Webber says.
However, he feels the lift from improved asset prices has played out, meaning prudent capital management and dividend are how owners will be differentiated.
