Tankers Archive

July 13th 2018

Non-mineral oil trade Obstacles to growth

More than two-thirds of the MR/Handy vessels in oil trades are certified as IMO2/3. In theory, the certification allows them to carry chemicals and vegetable oils in addition to petroleum products. However, only a handful of the non-oil trades – liquid fertiliser, ethanol, caustic soda and vegetable oils – have successfully been tapped by these vessels. With a few exceptions, regulatory and trade developments limit trade growth.

June 1st 2018

OPEC output & VLCC rates Going up?

With oil prices in the high $70s/bbl, the temptation for Russia, Saudi Arabia and other Middle Eastern OPEC producers to lift production is strong. That bodes well for tanker demand.

May is likely to have seen OPEC production fall to its lowest level since April 2017. This will be due more to unplanned outages in Nigeria and declining Venezuelan production than to OPEC’s agreed production ceiling. Not surprisingly, VLCC returns remain pitiful.