The strength of the US dollar and the potential for higher interest rates by the US Federal Reserve could have a negative impact on the tanker market. A stronger US dollar would make dollar-denominated barrels more expensive for non-US buyers, potentially reducing oil demand and affecting the tanker market. Higher interest rates may disincentivize holding inventory and make long-haul crude shipments less attractive. However, despite these challenges, the medium-term outlook for tanker earnings remains favorable, supported by underlying market fundamentals and an improved oil supply outlook. The direction of the market will depend on the Fed's rate policy. [3bb6c11b] Pressure on the US Federal Reserve to maintain interest rates 'higher for longer' could potentially hurt oil demand with a knock-on effect on tankers. [011bc744]
Source: TradeWinds [ee1ee2c0]
Markets grapple with the prospect of higher for longer US rates. But safe-haven demand could strengthen the dollar, too. [83427f56]