In switching its rating on the VLGC space from buy to hold, analysts at the Norwegian finance house say it’s time to start planning an exit strategy.

Analysts Nicolay Dyvik, Oyvind Berle and Petter Haugen say their reduced oil price forecast of $80 per barrel lowers the VLGC rate ceiling to $80,000 daily.

“This does not necessarily imply that the LPG party will end immediately as the fundamental arbitrage can stay wide if the price of propane in the US continues to fall,” the analysts wrote in a report today.

“Regardless