Tanker News Update 15/7/20

*Could There be Another Storage Boom* As the independent teapot refineries in the Chinese Shandong region increase their run rate, storage is once again reaching its limit. This greater run rate, is in attempt to de-congest the multiple VLCC’s waiting to discharge in Chinese waters. Demand for refined product is slowly starting to come online, …

OPEC+ ponders when and how far to cut

OPEC’s Joint Ministerial Monitoring Committee (JMMC) will meet on Tuesday and Wednesday to recommend the next level of cuts after compliance in the group hit 107% in June, up from 77% in May.   Record high inventories in the US and a second wave contagion around the globe have added speculation that OPEC+ might yet …

Crash, Bang, Recovery

It was never going to be easy recovering from the largest economic shock the world has ever encountered. After record drop in consumer spending, GDP, travel and so many other indicators, it is hard to quite fathom the scale of the disruption, or the mountain left the climb to bring things back to normal. Debt …

Crash, Bang, Recovery

It was never going to be easy recovering from the largest economic shock the world has ever encountered. After record drop in consumer spending, GDP, travel and so many other indicators, it is hard to quite fathom the scale of the disruption, or the mountain left the climb to bring things back to normal.   …

Tanker News Update 8/7/20

*Catastrophic Crack Margins* COVID-19 may have caused a tremor in the refining industry that will be seen for years to come. Simple refinery economics means profit is made in the differences on input (crude) and outputs (refined distillates). With global demand in refined products slumping in recent months their demand still isn’t growing enough to …

Short term crude direction waits on data

Newly reported coronavirus cases and mobility data, including an EIA report on gasoline consumption coming out later this week, will be watched by market participants in order to determine the short-term direction of crude prices in the next few days.   On the supply side OPEC+ production is at its lowest since 1991 and is …

Oil market waits for data for pre-holiday direction

All eyes for signs of potential demand recovery are on data announcements due on Tuesday from the American Petroleum Institute, from the US government’s Energy Information Administration on Wednesday, and from the key 4 July holiday, when increased travel is expected.   A Reuters poll showed analysts expect U.S. crude oil stockpiles fell from record …