VLCC earnings are likely to remain below the levels of smaller crude carriers for the rest of this year following Saudi Arabia’s decision to cut oil production, says BRS Group.
The largest crude carriers are likely to be hardest hit by the 1m barrel-per–day (bpd) cut in July as they lift 85% of Saudi exports.
“This presents yet another headwind in the seemingly never-ending list of factors delaying the [VLCC] segment from regaining its structural earnings premium over smaller aframaxes and suezmaxes,” BRS said in a weekly report.
