Trafigura to Convert More Supertankers If Oil Market Woes Linger

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Bloomberg News

Andrea Olivi,Trafigura Group,Market Conditions

(Bloomberg) -- Trafigura Group could switch more of its crude-oil tankers to carry refined products if sluggish market conditions persist.Most Read from...

About 12% of Trafigura’s fleet of very-large crude carriers and 20% of its Suezmaxes can carry those fuels on top of shipping denser crude, the trading house’s global head of wet freight, Andrea Olivi, said in an interview. “From what we see in the market today, I would expect this number to potentially increase,” he said.

VLCCs, with their large sizes and ability to sail longer distances, allow for greater economies of scale, said Olivi. “VLCCs have become the bellwether of the market, they are extremely flexible in adapting,” he said.

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