LR2 Demand to Find Support from Physical Balance Developments
Dec. 17, 2021
Staying on the theme of preliminary findings from our upcoming 2022-2026 Tanker Market Outlook, we focus this week’s highlight on LR2 ton-mile demand from the Middle East to the West, particularly to Europe. For 2022, we project a 6.0% increase in ton-mile demand on this trade, with growth stabilizing at about 5.0% year-on-year throughout our forecast period (Figure 1).
Recent data from JBC Energy reveals Northern Europe distillate demand to outpace parallel supply additions from the Continent’s refining complex. The impact from gas-to-oil power generation requirements is likely to remain in place for the short-term and ...
Caribbean Flows and Suezmax Demand
Dec. 10, 2021
As we are preparing our long-term forecasts for our upcoming Tanker Market Outlook, we want to take a look at some key developments in regions and tanker classes of increased interest. One of those is the Caribbean, a region that is poised to see some ton-mile demand growth due, among other factors, to the developments in Guyana. In fact, Exxon’s FPSO “Liza Unity” has reached the country in late October and according to the company is going to come online sometime in early to mid-2022, adding up to 220,000 b/d of additional production.
This is positive news ...
US SPR Release and Crude Flows
Dec. 3, 2021
OPEC and allies reluctantly agreed to maintain the path of gradual, 400,000 b/d per month increases in their latest meeting that was concluded this week, although the organization stated that it could meet again if market conditions dictated it. Perhaps one of the deciding factors has been the mounting pressure from the US to open the taps in order to slow the crude oil price rally and ease some of the inflationary pressures in the country, especially on gasoline prices. To the same end, the US has also announced that it will release quantities from its SPR although ...