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 …

Did Someone Mention Increasing Demand?

It is the panacea for all markets, the biggest factor that could help us recover some sense of normality, the only thing that will bring a smile to suppliers across the world. It is, of course, increasing demand.   The virus has caused huge disruption and left markets unable to react quickly enough to counteract …

Oil Through The Looking Glass

*Crude Back in Trouble* Oil prices have continued their movements downwards as the markets digests the news of another US stocks build reported yesterday afternoon, as well as a resurgent virus in the United States. New infections are at new daily records in Florida, Texas and California. According to the EIA U.S. crude inventories rose …

Tanker News Update 25/6

Uncertainty on the high seas One would say that the forecast is looking patchy with low winds not moving many sails.   The general outlook is a market softening, as a flotilla of vessels are coming off the back of crude floating storage that earned a healthy profit.   This ultimately has led to an …