Oil tanker owners got a boost as OPEC and its allies unexpectedly announced a plan to hike output in January. 

Shares of listed companies rallied after the news, with Frontline Ltd reversing an earlier loss to trade up as much as 2.3%. Listed peers in the U.S., including International Seaways Inc. and DHT Holdings Inc. also rallied as much as 4% and 3.9% respectively. Tanker rates have been stubbornly low all year as an oversupply of ships and restrained crude output suppressed earnings. 

Oil in transit—defined as oil aboard tankers moving at sea—has jumped in recent weeks to its highest level since June 2020, according to data from Vortexa, sparking some optimism that the sector may be on the brink of recovery. With OPEC+ adding more supply to the market, that trend could be set to take off. 

OPEC+ Sticks to Planned Supply Hike But Adds a Get-Out Clause

“OPEC+ decision means this may continue!” Frontline Management Chief Executive Officer Lars Barstad tweeted, referencing a chart of rising seaborne volume.