Palm & Veg Report, December 2018

We are finally nearing the end of 2018, a year littered with words beginning with the letter ‘C’, contraction, consternation, confusion, and consolidation and one starting with a ‘B’ for Brexit! Few in our industry will argue that this has been a year which will be remembered as the year we just want to forget. The one positive is that markets are very active at the moment so it looks like we will close the year on a significantly busier note than when it started. All things being equal 2019 should be a better year although it’s hard to say for sure exactly where we are heading as all the basic economic indicators are still very confusing.

Only one month ago those talented and clever commodity analysts predicted crude oil prices might reach $ 100 dollars per barrel by the year end. As is so often the case, the trap door opened and oil prices have been in a rapid decent ever since, losing close to one third of their value over the last two months. How much this has influenced the CPP markets globally is hard to say but one thing for sure is the CPP markets are extremely lively at the moment, in fact they are booming, and all product tanker owners are taking every advantage of the huge spike in earnings, and frankly after a pitiful year who can blame them.

James Woolfson