Distance Dictates Demand

Nov. 21, 2016

Global refinery capacity is projected to reach 96.6 million b/d by the end of 2016, with 64% of these capacity additions stemming from East of the Suez markets.  The Far East, Indian Sub-Continent and Southeast Asia regions lack the amount of crude oil production needed to meet refinery demand, leading them to source marine transported barrels from foreign nations.  The re-arrangement of this sourcing dictates tanker trade routes and impacts ton-mile demand in the East of the Suez markets. 

In McQuilling Services latest complimentary industry note, the group analyzes bilateral country trade flow data through July in order ...

Rates in the Med Rise

Nov. 17, 2016

A firming trend has been observed in the Mediterranean market in November as Aframax rates on the cross-Med route have climbed from an average of WS 70.5 in October to average WS 98 month-to-date.  The strengthening is due in part to boosts in both Kazakhstan and Libya crude production, which has effectively increased available cargoes in the Central and West Mediterranean.  Although Kazakhstan’s output dropped by 300,000 b/d in August due to a period of heavy maintenance, the restart of the massive Kashagan field in the Caspian Sea increased the nation’s production to 1.25 ...