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 to more accurately understand the development of Dirty Petroleum Product (DPP) tanker demand from 2014.