The Baltic Exchange's index of clean tanker rates surged 45% this month thanks to a combination of seasonal and one-off factors, according to Stifel analyst Ben Nolan.
Beyond those factors, the rate rise indicates that clean tanker supply and demand is "tightly balanced and there is not a high degree of structural oversupply in the market."
Nolan says the strength in in rates has a read through for the two major publicly listed players in the space, Ardmore Shipping and Scorpio Tankers.
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