• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 14 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 15 hours The United States produced more crude oil than any nation, at any time.
  • 15 hours How Far Have We Really Gotten With Alternative Energy
  • 14 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 1 day Bankruptcy in the Industry
Nigeria To Launch Crude Trading at its Commodity Exchange

Nigeria To Launch Crude Trading at its Commodity Exchange

Africa’s biggest oil producer, Nigeria,…

Energy Stocks Rally Under The Radar

Energy Stocks Rally Under The Radar

Big Oil is trumping the…

North Sea Oil and Gas Firms Continue Drilling Despite Climate Goals

North Sea Oil and Gas Firms Continue Drilling Despite Climate Goals

Major North Sea oil-producing countries…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Demand For Oil Tankers Plunges As OPEC+ Restricts Exports

Oil tanker

Ton-mile demand, a proxy for demand for oil tankers, has slumped in the summer as OPEC’s oil production dropped to a three-decade low and exports were drastically cut as part of the OPEC+ deal, according to a Lloyd’s List Intelligence analysis.

Ton-mile demand – measuring the crude oil volumes carried by distance traveled – dropped by 18.6 percent year over year in July. The plunge in crude tanker demand in July was the steepest fall since the coronavirus started to impact global oil markets, Michelle Wiese Bockmann writes in the analysis. The drop was mostly due to the plunge in demand for tankers in the Middle East, whose key producers and members of OPEC are cutting production and exports in response to the crash in global oil demand.

Early data from Lloyd’s List Intelligence suggests that demand for tankers will be equally depressed in August.

The ton-mile demand data also suggests that in June and July, non-OPEC exporters gained market share in terms of tanker demand at the expense of OPEC, according to Lloyd’s List.

For August, demand for tankers in Saudi Arabia at least is not expected to jump, although OPEC+ began easing the record collective cut by 2 million barrels per day (bpd) on August 1.

Saudi Arabia has said it would not be rushing into ramping up crude oil exports this month, as the increased production will go to domestic power generation, for which Saudi Arabia burns more oil during the summer months.

In the brief Saudi-Russian price war in March and early April, supertanker owners were the winners, as the spat coincided with the start of the lockdowns in major economies and increased the global oil glut. Shipping companies had a field day with Saudi Aramco booking tankers en masse to flood the market with oil, while traders scrambled to charter tankers for floating storage to sell at higher prices later.

According to Teekay Tankers, crude tanker spot rates are likely to be weaker in the second half of 2020, as more vessels will be returning to the trading fleet from floating storage.   

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News