Product Tanker Market Could See a Boost This Summer
According to Intermodal’s Research Analyst, Mr. Fotis Kanatas, “taking a closer look at the fundamental aspects of trade in the Atlantic, we observe a consistent decline in stockpiles in the United States, encompassing both crude oil and gasoline. This downward trend is fueled by a combination of factors, including the ongoing driving season and the escalating refining activities conducted by US refiners. In terms of crude oil, inventories have experienced a notable decrease of 12.5 million barrels (mb), reaching a total of 455.2 mb.
While this figure remains below the 5-year average, it surpasses the corresponding value from the previous year, albeit exhibiting a declining trajectory. As for US gasoline stockpiles, they currently stand at 216.3 mb, a significant deviation from the 5-year average, falling outside the expected range, and remaining lower than the comparative figure from the previous year. Consequently, this situation may potentially prompt an increase in the importation of clean petroleum products into the US, originating from various origins, be it Europe or Asia. When considering jet fuel inventories, they are comparatively more robust than gasoline inventories. Currently, jet fuel stockpiles amount to 42.58 mb, indicating an 11.08% rise from the corresponding figure of 38.33 mb reported last year”.
“With inventories of clean products dwindling on both sides of the Atlantic, and the driving season in the United States just around the corner, it remains to be seen whether we will see a move to other sizes that carry clean products such as LR2. One thing is for sure, the United States needs to replenish its inventories, so we should keep a close eye on the region for more trading activity ported last year”, Mr. Kanatas concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide