Frontline (OSE: FRO) shares rallied almost 30% on Friday. CEO Jens Martin Jensen had told Reuters in an interview on Thursday afternoon that tanker marker has seen a big turnaround on massive amount of ships transporting oil to China from the Persian Gulf. Jensen said that day rates for oil tanker had recovered to an interval between 25 and 30 thousand dollars.
Frontline shares haven’t been trading this high since last summer and the recovery is quite surprising considering the still atrocious quarterly numbers in the previous quarter and still somewhat wobbly balance sheet despite added strength gained from the Frontline 2012 arrangement. Jensen said the market is far better than the company had expected and hopes this is a sign of an increase in China’s refinery capacity.
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