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

Contracts

Sulzer Shareholder has 5 pct Dresser-Rand Stake

Russian billionaire Viktor Vekselberg's Swiss investment firm Renova Group said on Friday it had a 4.99 percent stake in U.S.-based Dresser-Rand, which might become the object of a takeover battle.

Source: Siemens Offering $6.1 bln for Dresser Rand

Germany's Siemens plans to offer more than $6.1 billion, or $80 per share, for U.S. compressor and turbine maker Dresser-Rand, Germany's Manager Magazin said on Friday.

Transas Simulators Boosts Western Shipping Training Center

Transas Marine Pacific has successfully completed the upgrade of a simulator complex for Western Shipping Pte. Ltd. training center. The simulator class was

Tanker Trends

Ingram Barge Order 20 Tank Barges for 2015

Ingram Barge Company say they will be building 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank barges have come through acquisitions,

Finland Grants Support to Three Small LNG Terminals

The Finnish government granted 65.2 million euros (84.22 million US dollar) in subsidies to build three small liquefied natural gas (LNG) terminals to cut on use

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1124 sec (9 req/sec)