Tanker shipping: worst not yet over as industry pays for strong second quarter.

This year, tanker shipping will not benefit from the usual strong winter seasonal effect. Though the new lockdowns were being introduced in many countries are less strict than in the spring, the effect on tanker shipping will be worse, given the oil supply glut of Q2. The news of an effective vaccine offers some hope of a global oil demand recovery but, however it comes about, it will be slow and drawn out, and it will be at least 2022 before global oil demand returns to pre-pandemic levels.

The arrival of winter usually gives a seasonal boost to tanker demand and, although much has changed in 2020, many were still counting on an improvement - even a slight one - to the sector. However, the new lockdowns and travel restrictions imposed as a result of rising COVID-19 infection cases, coupled...