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Weak oil demand will keep crude oil ship prices low



The U.S. Energy Information Administration (EIA) said on Wednesday that the price of crude oil vessels remained low until global crude oil demand increased until September fell to the lowest level since 2003, which is the main route from the Arabian Gulf to Asia.

Earlier this year, between March and May, crude oil ship prices soared because refineries scrambled to buy cheap oil when prices were in their teens, and floated storage amidst the pandemic’s plummeting fuel demand The demand has soared.

In the brief Saudi-Russian price war in March and early April, the owner of the supertanker was the winner. The dispute coincided with the beginning of the blockade of major economies and exacerbated the global oil surplus. The shipping company and Saudi Aramco made reservations on the spot to fill the market with a large number of oil tankers, while traders scrambled to rent oil tankers for floating storage in order to sell them at higher prices in the future.

According to EIA estimates based on Bloomberg data, one of the world’s key tanker routes from Japan to the Arabian Gulf is the highest since mid-March since at least 2000. However, the short-term increase in tanker rates in October 2019 was due to the US The result of sanctions imposed by China Ocean Shipping Company.

BIMCO, the world’s largest international shipping association, said in an analysis in early September that the tanker industry is facing challenges for several months.

Peter Sand, chief shipping analyst at BIMCO, wrote: “Lower aviation and transportation demand, as well as a fundamental reduction in oil consumption, will harm the industry for at least 15 months.”

“For the rest of this year, the tanker shipping industry will find itself paying for the high point in the second quarter. Sander said: “The higher demand for transportation was not because of increased immediate consumption, but because of the increase in import Refineries seek to benefit from lower prices, and future demand will continue to increase. “

Designed by Charles Kennedy for Oilprice.com

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