Cleaves Securities is downgrading the tanker sector after the oil supply cut agreed over the weekend.
In a note, analyst Joakim Hannisdahl said he expects demand to catch up with supply this September, leading to a rough second half for tanker owners with an 11% year-over-year drop in oil transportation demand.
"We do see the potential for an oil tanker supercycle from [2023], but believe it is too early to discount this scenario into today’s share prices," Hannisdahl said in a note, re-rating the sector to hold from buy.
