• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 4 hours UK, Stay in EU, Says Tusk
  • 37 mins Socialists want to exorcise the O&G demon by 2030
  • 4 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 14 hours How Is Greenland Dealing With Climate Change?
  • 1 hour Venezuela continues to sink in misery
  • 14 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 13 mins Nuclear Power Can Be Green – But At A Price
  • 2 hours What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 16 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 10 hours Maritime Act of 2020 and pending carbon tax effects
  • 24 hours Solid-State Batteries
  • 22 hours Orphan Wells
  • 17 hours Trump inclined to declare national emergency if talks continue to stall - Twitter hides this as "sensitive material"
The Oil Bull Market Is Back

The Oil Bull Market Is Back

Oil entered a bull market…

Oil Rises After Choppy Start To The Week

Oil Rises After Choppy Start To The Week

Oil prices rose by roughly…

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