The Fiji Times: Brexit can be ‘good’
29 June 2016: “The UK’s vote to exit the European Union after being a member since 1973, could have a positive impact on the tanker market in terms of movement of oil products between the UK and EU countries, according to Poten & Partners. Namely, given the short-haul nature of the UK-EU crude oil and product trades, any changes in trade-flows as a result of Brexit could be positive for ton-mile demand, in particular for product carriers. The figures for exports over the past 10 years from the UK to European Union countries show exports are slowly going down, primarily as a result of the decline in crude oil production and exports. In the first quarter of 2005, UK exported 7.8 million tonnes of crude oil to other EU countries, representing 69 per cent of total exports by volume. By the first quarter of 2016, crude oil exports were down to 5.1 million tonnes.
“Poten & Partners said the exit vote came as a shock and, as a result, currency, commodity and stock markets are in turmoil across the globe. The short-term economic and political impact as a result of the heightened uncertainty and the long-term implications will only become clear when new trade agreements are being negotiated, which could take several years, according to Poten & Partners.”
