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The chief executive officer (CEO) of Teekay Tankers Ltd, Kevin Mackay, has pointed out that the recent increase in bunker fuel prices has been one of the key factors that has contributed towards the decline in spot tanker rates during the first quarter, whilst higher oil demand has in turn helped support the crude tanker market.

In a statement for the launch of the company's financial results during the first quarter of 2016, Mackay remarked: "Many of the positive tanker fundamentals in 2015 have continued into 2016, supporting crude tanker demand, including growing oil demand, high crude oil supply from OPEC, ongoing strategic and commercial stockpiling of oil, and port and ullage delays. However, spot tanker rates softened during the quarter mainly due to a heavy refinery maintenance schedule, a milder winter in the Northern Hemisphere, and higher bunker fuel costs."

Commenting on the issue of oil supply and demand, Teekay Tankers said: "Oil market fundamentals continue to support crude tanker demand. OPEC oil production remains near record highs and the breakdown of recent talks in Doha between several OPEC and non-OPEC producers will likely result in oil supply remaining at elevated levels in the near-term. Production outside of OPEC continues to decline, with U.S. crude oil production recently falling below 9 million barrels per day (mb/d) for the first time since October 2014. This slowdown has led to a renewed increase in U.S. crude oil imports, while the recent repeal of the crude oil export ban has resulted in the first few export cargoes leaving the United States. Global oil demand is forecast to grow by 1.2 mb/d in 2016 (based on the average of IEA, EIA, and OPEC forecasts), while relatively low oil prices continue to encourage strategic and commercial stockpiling of oil. Lastly, there continues to be significant port and ullage delays in certain regions, particularly in China, which helps to tighten regional tonnage balances."

In its first-quarter results, Teekay Tankers reported an adjusted net income attributable to shareholders of $46.0 million, or $0.29 per share, for the quarter ended March 31, 2016, compared to $39.0 million, or $0.34 per share, for the corresponding period last year.

The higher adjusted net income was attributed primarily to an increase in fleet size as a result of the acquisition of 19 mid-size tankers in 2015 and the expansion of the company's chartered-in tanker portfolio in 2015 and 2016, partially offset by lower spot tanker rates in the first quarter of 2016 compared to the same period in 2015.

During the first three months of 2016, Teekay Tankers generated $66.2 million, or $0.42 per share, of free cash flow, compared to $53.0 million, or $0.46 per share, in the prior-year quarter.