Value Investor’s Edge Live #18: On The Water In The Tanker Markets With Frontline’s CEO

J Mintzmyer spoke with Frontline's CEO, Robert Hvide Macleod, last week about how the tanker market is shaping up amidst a lot of commodity price moves and investor interest. Topics Covered 1:00 minute mark - What has changed in the market YTD compared to initial setups? 3:00 - Have we seen something like this in the market before? 4:30 - Preferable data source or metric for global storage balance? 6:30 - Discussion of ‘oil on water’ metric 10:30 - What is LR2 clean/dirty split? What is driving LR2 spike? 11:45 - What time charter offers are available in the markets? 15:00 - Fixtures available anywhere for FRO? Indexes accurate? 18:45 - Comments on Saudi flotilla? What happens if destinations change? 21:00 - How does cash payment flow work for spot vs. TC? 23:30 - Any concerns with CP risk? Precedent for this? 25:15 - Chance of shifting terms of spot market payment? 26:45 - Risk factor of ‘famine’ on the other side of the curve? 31:00 - IMO 2020: Spreads are down, will they come back? 36:30 - Capital allocation priorities now? Any newbuildings? Consolidation? 41:15 - Formally swearing off newbuilds? Yes! 42:30 - What is holding back the tanker stocks in these markets?