Gibson Shipbrokers, the first UK shipbroker to become a fully independent, employee owned company, run on behalf of, and for the benefit of all worldwide employees of the company says 2020 is already turning out to be a highly volatile year.
According to its latest report, ‘’most tanker freight markets have remained extremely firm over the first two weeks of January whilst geopolitical risk has ratcheted up once again. The US killing of General Soleimani, followed by Iran’s retaliatory action could have had major repercussions for the oil and tanker markets.
‘’However, aside from price impacts, so far no physical effect on the market has come to fruition and tensions appear to be cooling – for now. What happens next however will be key, with countless different scenarios that could play out. One of the most talked about scenarios remains the possibility that the Strait of Hormuz could be closed.
‘’Whether this is achievable or not, and whether it would trigger a major conflictis beyond the scope of this report, but any closure no matter how temporary would impact approximately 17.2 million b/d of crude oil and 2.4 million b/d of refined product flows. If this was to materialise, the impact on the oil price would be extreme, with major economic ramifications.’’
