• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

How did the oil price influence the freight rates for VLCC crude oil tankers between 2005 and 2015?

Blaalid, Carina Backer-Grøndahl
Master thesis
Thumbnail
View/Open
masterthesis.PDF (3.153Mb)
URI
http://hdl.handle.net/11250/2432136
Date
2016
Metadata
Show full item record
Collections
  • Master Thesis [4207]
Abstract
The subject of this thesis is “How did the oil price influence the freight rates for VLCC crude

oil tankers between 2005 and 2015?” The oil price is important for the development of world

economic activity, as oil is a primary energy source. Given that oil is mainly transported in

tankers, the oil price has substantial influence on crude tanker freight rates. The period 2005-

15 was eventful with large movements in both the oil price and freight rates.

The analysis in this thesis is based on a basic supply and demand model, as well as a more

specific model of the shipping market developed by the shipping economist, Martin Stopford.

The correlation between the oil price and freight rates varies across time, and the oil market

affects freight rates both directly and indirectly. The freight market is influenced by

predictable factors such as economic activity and fleet growth, which develop gradually over

time. However, “random shocks” is the most important variable in Stopford’s model. One

such shock was the global financial crisis, when oil prices and freight rates dropped

significantly. While oil prices recovered quickly, freight rates remained low for years.

Another random shock was the American shale oil revolution, which led to substantial

increases in oil production. Subsequently, the Organization of the Petroleum Exporting

Countries sacrificed their objective to maintain stable and high oil prices and instead chose to

protect their market share. Consequently, the oil prices dropped, while the freight rates started

to increase following the growing demand for cheap oil.

This thesis demonstrates how unpredictable elements, such as oil price movements, have

influenced the tanker market, and thus the fortunes of tanker owners. Fluctuations have

always been an important part of the shipping market, and make the shipping sector an

interesting object of study.

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit