Return of tanker glut leaves investors disillusioned

Rate gains have not materialised, despite initial optimism

[NEW YORK] Six years after shipowners ordered too many vessels before the global recession, driving down rates and leaving new ships anchored for lack of cargoes, investors are souring again on oil-product tankers in the face of a new glut.

This time around, some of the optimism was fuelled by private-equity firms including WL Ross & Co and Blackstone Group lured by bets on rising demand because of growing US and Middle East exports of oil products. Instead, chartering rates fell by a third as orders...

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