A Shift to Transshipment

Recent closures of local refineries in the United States, the neighboring Caribbean islands and Europe will create increased demand for product tankers in the Atlantic Basin. Last week, HOVENSA LLC announced that it will commence shutting down the remaining 350,000 bpd capacity at St. Croix, HOVENSA’S facility. When it is converted into a storage terminal, a profound displacement of trade dynamics into and out of the Caribbean will occur. To further exacerbate the region’s product supply dynamics, this week financial troubles at Petroplus called into question the future of 660,000 barrels per day of European refining capacity. Download here