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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Newport News, ODU Partner for Bachelor's Degree Program

Huntington Ingalls Industries (HII) announced today that apprentices at Newport News Shipbuilding will now have the opportunity to earn a bachelor of science degree

Navios Time Charters Two Product Tankers

Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, has announced  that the Nave Equinox and the Nave Pulsar have been chartered out

Azeri Shipyard, BP Sign Vessel Construction Contract

Azeri state energy company SOCAR's shipyard and British oil major BP have signed a $378 million deal to design and build a subsea construction vessel for the Shah Deniz II gas project,

Tanker Trends

Global Shipping Exposed to Cyber Threats

The next hacker playground: the open seas - and the oil tankers and container vessels that ship 90 percent of the goods moved around the planet. In this internet age,

Euronav Posts 62% Core Profit Increase

Belgian crude oil shipping group Euronav on Wednesday unveiled a 62 percent rise in first-quarter core profit as daily rates for its fleet rebounded from last year.

Navios Time Charters Two Product Tankers

Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, has announced  that the Nave Equinox and the Nave Pulsar have been chartered out

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion 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: 0.1004 sec (10 req/sec)