Why Tankship Trade to U.S. is in LImbo

BIMCO
Thursday, April 11, 2013

Increasingly lower oil demand in the U.S. prompts tankship operators to look towards the China market.

According to a BIMCO review, the tanker market is doing full steam ahead – not in relation to demand, earnings or actual operating speed, but in relation to structural demand changes in the West. At the epicentre of this is the world’s most thirsty oil consumer: the U.S.

Not to be missed by anyone, the U.S. oil demand recorded a 16-year low in 2012. In 2005, the U.S. consumed 20.8 million of barrels per day (m/bpd), in the same year the domestic oil production stood at 5.2 m/bpd. Today 18.6 m/bpd is consumed, 6.5 m/bpd is produced and imports of Canadian oil are the growth story.

Coincidentally with a lower and lower oil demand in the U.S., the U.S. domestic production of crude oil knows only one way. In excess of 0.5 million barrels a day more is produced domestically over the past year as compared to the previous year. This has left inventories swollen and the surplus has put downward pressure on current WTI and Brent prices as well as on the forward curve for oil prices.

BIMCO suggests that eyes turn to the new thirsty kid in the class, China. Since China is building refinery on a really large scale, import of crude oil is very relevant to focus on.

Source: BIMCO

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

VOS Sugar First Charter

The newest addition to Vroon’s fleet, subsea-support vessel (SSV) VOS Sugar, recently started work in the BARD Offshore 1 Offshore Wind Farm (OWF). The vessel

TAMRF Extends Research Vessel Charter

Overseas Drilling Ltd., a 100 percent owned subsidiary of Siem Offshore Inc., and Texas A&M Research Foundation (TAMRF) have agreed to extend the charter of the

BWTS Refit for Netherlands Naval Vessels

The Defense Material Organization has awarded three contracts to Goltens Worldwide’s Green Technologies business unit for the engineering and turnkey installation

Tanker Trends

EGAS: Egypt to tender for 10 LNG Cargoes

Egypt will tender next week to import 10 cargoes of liquefied natural gas (LNG) for delivery in July and August, an official from the state gas company, EGAS, said on Thursday.

Fos Tanker Queue Grows as Strike Impacts Refinery Ops

Nearly two dozen vessels were queued outside the French oil import terminal in Fos, southern France on Thursday, held up by a strike organised by the hardline CGT

Statoil Says Sees European Gas Prices Bottoming Out

Norway's Statoil does not expect European gas prices to fall much further as rising demand from the power generation sector would offset an expected increase in liquefied natural gas (LNG) supply,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0926 sec (11 req/sec)