• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 35 mins Emissions Need To Be Halved To Avoid 3C Warming
  • 6 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 6 mins Coal Boom in Asia is Real and a Long Trend
  • 15 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 16 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 2 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 4 hours Solar Panels at 26 cents per watt
  • 9 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 9 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 9 hours US to become net oil exporter in November: EIA
  • 6 hours US Shale Drilling lacks regulatory body.
  • 14 hours Trudeau approves Trans Mountain Pipeline
  • 17 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 16 hours The Plastics Problem
Oil Prices Jump On Hopes Of End To U.S.-China Trade War

Oil Prices Jump On Hopes Of End To U.S.-China Trade War

Oil prices erased earlier losses…

Putin’s $40 Oil Lie

Putin’s $40 Oil Lie

Much has been made of…

Tanker Rates Rise to Four Year High, as Demand for Naphtha Increases

Rising demand from Asia for naphtha, a product refined from crude oil and essential for the production of most types of plastic, along with a shortage in the number of ships actually able to transport the product has led, and will continue to lead, to an increase in rates for tankers.

Rates for tankers carrying naphtha had been declining for a while, especially after the disaster at Fukushima which saw much of Japan’s manufacturing industry close down and daily rates hit a low of $1,516. Ship owners started carrying crude oil and other ‘dirty’ cargoes which offered a larger profit.

Demand in Japan has now picked up again as the manufacturing has increased again, and demand for naphtha imports has grown every month. However due to the fact that many ships converted to carry crude oil, there is a shortage for the shipping of naphtha.

Related Article: Will Regulators Damn Keystone XL?

Around 44 tankers were switched to take oil and other dirty cargoes since 2011, but the problem is that in order to revert back to naphtha, the ships tanks must be cleaned out and decontaminated.

Analysts at Bloomberg have no estimated that the lack of tankers compared to demand for their services will see daily rates hit $16,250 in 2013, 52% more than this year.

Robert Bugbee, the president of Scorpio Tankers, one of the shipping companies expecting to benefit from increased rates, said that, “demand is stronger than it has been for years. We have seen the fundamental trend for tanker rates to Asia shift for the better. The market for naphtha is exceeding our expectations, and so we are much more optimistic.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News