Deutsche Bank analyst Chris Robertson last night upgraded Scorpio Tankers to Buy from Hold with an unchanged price target of $55. Now that the Q2 earnings period is over for tankers, the analyst updated models to reflect average spot TCE rates seen in the second half of the quarter. Average spot TCE rates were down almost across the board in all tanker segments, with the VLCC segment being the exception. the analyst tells investors in a research note. The firms believe this was driven by large inventory building cycles seen in Q4 and Q1 ahead of and around the official implementations of sanctions on Russian seaborne crude oil and refined oil products. It says tanker demand will likely increase this summer and into Q3 as refinery maintenance winds downs and as we enter the “seasonally-stronger” driving period.
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