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 Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Scandlines Orders Ferry Battery System

Corvus Energy announces the signing of marine Energy Storage System (ESS) contract with Scandlines Denmark ApS; world’s largest battery hybrid electric fleet orders additional 2.

Mercury Diesel Engines for 16 New USCG Boats

Mercury Marine has entered an agreement with Metal Shark Aluminum Boats to power 16 U.S. Coast Guard (USCG) boats with Mercury diesel engines.   “Mercury Marine’s 2.

Masterbulk, SeaSafe Ink Lifeboat Service Deal

Masterbulk Singapore has entered into a five-year global sole service supplier agreement with the Wallem Group’s lifeboat maintenance service company, SeaSafe Marine.

Tanker Trends

Tankers Switch to Digital Navigation

In July 2015 international regulation requires all tankers to be compliant with IMO rules for the use of ECDIS and ENCs. As many shipping companies start planning

Tanker Demand Picks-up in Canada

Canada’s role in the oil industry has changed dramatically in recent years driven by synthetic crude oil production in the oil sands of Alberta.   New plans for Energy East,

Stena Sonangol Suezmax Pool Rings in 10 Years

Stena Sonangol Suezmax Pool celebrates 10 years of collaboration and trading.   The 10th anniversary celebrations took place in London on May 20. Today on May 26 it is Houston’s turn and,

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Offshore Oil Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.1089 sec (9 req/sec)