1. Latin American Panel November 1, 2011 TANKER MARKET OVERVIEW JOSEPH ANGELO MANAGING DIRECTOR

2. Weak market, uncertain/weak fundamentals Oversupply of tankers –slow steaming (ballast) –Lowering of C/P speed –Suez Canal less used –Piracy effect – longer routes/inefficiency –Waiting Increased Middle East export has not helped freight rates The state of the Tanker Industry

3. Tanker Market World GDP and oil demand change Source. IMF/BP/IEA/Fearnleys % Oil/tanker demand correlates with Economic growth IMF forecast positive growth projected – but there is great uncertainty Because the extra barrel is taken from the Middle east, tonne-miles growth is stronger

4. Recent Tanker Rates Source: Baltic: Exchange/BITR $/day Rates improved by slow steaming/backhauls

5. Tanker Market Oil price and freight rates 1970-2011 $ per barrel

6. Tanker Market VLCC newbuilding prices and break even rates m $ $/day

7. Tanker Demand

8. Middle East oil production mbd Year

9. Tanker Demand Increase in world oil demand Based on data from IEA mbd

10. Tanker Demand Seaborne Oil Trade and Middle East Oil production Based on Fearnleys/IEA mbd000 bn tonne-miles

11. Tanker Demand Crude oil seaborne trade 38 mbd in 2010 3057 bn tonne miles in 2010

12. Tanker Demand Oil balance: production - consumption Source: INTERTANKO / IEA mbd

13. Tanker Demand Middle East Oil production Jan-2000 to Aug-2011 Based on Fearnleys/IEA mbd Primo Oct. 2011 negative VLCC Rates

14. Tanker Demand Trade movements Based on BP mbd

15. Tanker Supply

16. Tanker Supply Tanker fleet development Tanker fleet increase 2003-2013 some 72% m dwtnumber Assumed orderbook August 2011, include chemical tankers

17. Tanker Supply Tanker phase out, deliveries, scrapping tankers 10,000 dwt + balance assuming various demand increases m dwt Under above assumptions, 6% growth necessary to regain market balance by 2014 or more removal of DH tankers

18. Tanker Supply Newbuilding Orders (Clarkson) 200220032004200520062007 20092010 Oct- 11 VLCCs4.615.012.310.134.711.434.06.115.81.6 Suezmaxes2.37.94.51.112.29.48.04.49.52.4 Aframaxes5.210.67.26.018.48.83.72.04.00.8 Panamaxes3.05.74.12.34.13.81.31.01.30.2 Handy3.36.64.76.111.24.93.51.41.61.7 Chemicals/s peci. 2.13.04.54.38.09.32.40.20.10.2 Total20.548.837.329.288.647.652.915.132.36.9

19. Average age tanker fleet above 10,000 dwt Based on LRFairplay Years

20. Tanker Values

21. VLCC value - 15 years old and scrap value Source: Clarkson/SIW m $

22. Conclusion

23. Conclusions Oil demand, tonne-mile, and tanker fleet indices Source: IEA, Fearnleys, INTERTANKO Tanker fleet increase 2002-2010: 46%

24. Conclusions Slowing Growth, Rising Risks Fundamentals uncertain or weak Recovery in the US and Europe and debt problems are aggravating situation Chinese growth is threatened partly by weakening world economy but also by a domestic debt burdened industry Oil demand growth still positive, but weakening Surplus of tankers will continue to increase

25. Conclusions Strategic tanker consideration China and Asia expected to drive demand and the Middle East has the reserves Successful Green House Gas reduction will mean reduced oil consumption High oil prices dampen growth in world economy and a stimuli to fuel saving Substantial opportunities for both owners and charterers with regard to vessel speed Costs reduction needs carful risk management

26. Thank You For more information, please visit www.intertanko.com