APPEC-Oil tanker market expected to experience low profits for another year -BIMCO

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An oil tanker is seen in the sea outside the Puerto La Cruz oil refinery in Puerto La Cruz, Venezuela on July 19, 2018. Photo taken on July 19, 2018./File Photo

SINGAPORE, Sept. 29 (Reuters) – The global oil tanker market faces another year of low income as the coronavirus pandemic and vaccine inequalities disrupt demand and producers limit crude production, said Wednesday a maritime transport analyst.

Revenues for the very large crude carriers (VLCCs) that haul most of the crude are about $ 10,000 per day, down from record highs of over $ 240,000 in 2020, after the pandemic hit. ravaged demand, creating an oil surplus and a storage rush. Read more

Despite an uneven recovery in global oil demand and some easing of production cuts, tanker shipping rates still have a way to go, analysts said.

“We have to look to another 12 months of pretty low profits,” Peter Sand, chief shipping analyst at BIMCO shipowners association, told the Platts APPEC 2021 annual conference.

“Most likely, in the deficit region, which means VLCC will earn less than $ 25,000 per day on average for next year.”

New variants and virus outbreaks in areas critical to growing oil demand are limiting demand growth for tankers, he added.

“We have to see the pandemic under control before we can really see a solid recovery phase. “

While tanker prices for refined fuels have “seen slightly better days … it also remains a fact that the tanker market is also under siege,” Sand added.

Although demand for refined fuels such as diesel and gasoline recovered in the first half of 2021 compared to the corresponding period last year, demand for jet fuel remains stubbornly low.

“The demand for jet fuel has actually declined, even from the first half of 2020, and it’s the only product that continues to decline as we move forward,” Sand said, citing data from BIMCO and Tradeviews.

The APPEC conference is being held this year in a hybrid format of in-person and online segments.

Reporting by Roslan Khasawneh; Editing by Clarence Fernandez

Our standards: Thomson Reuters Trust Principles.


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