LR product tanker earnings are starting to pick up again, and optimists are betting that the return of naphtha purchases in the Middle East and IMO 2020 will support the market going forward.

But there are warnings that US shale output will derail the optimism.

Based on Clarksons Platou Securities’ assessments, LR2 earnings have recovered to $15,600 per day as of Wednesday, while LR1s have bounced back to $12,500 per day. Both segments had dipped below the five-figure mark for most of July.