Opec+ output cuts to hit oil tanker rates

Earnings slump: A file picture of an oil tanker is seen at a refinery cargo terminal in Venezuela.About 40% of global crude output is transported by sea, meaning a substantial loss of cargoes seems likely.

LONDON: The shock decision of the Organisation of Petroleum Exporting Countries and its allies (Opec+) to cut oil production isn’t just redrawing the outlook for crude prices, it’s also hit the prospects of tanker companies that transport the barrels.

Shares of oil tanker pureplays including Frontline Plc, Euronav NV and DHT Holdings Inc all slumped on Monday after the alliance of producers surprised the market with a surprise output cut of about one million barrels a day.