Teekay sees oil tanker rates rising

|About: Teekay Corporation (TK)|By:, SA News Editor

Charter rates for mid-size vessels likely will rise next year as demand expands and ship supply either stays the same or shrinks, Teekay (TK) says.

There will be almost no growth for the next two years in the supply of Suezmaxes and Aframaxes, which haul ~1M barrels and 650K barrels of oil, respectively; the fleet of the smaller vessels may even decline while demand will increase by 3%-4%, TK says.