Tradewinds: $1 Billion Jones Act Tanker Deal Puts US Center Stage

“According to Poten & Partners, US crude production is nearing levels unseen in 22 years because of the rapid development of shale formations, which has fueled a surge in domestic refining that is unlikely to end anytime soon due to regulations that prohibit crude exports outside of North America.  ‘Thus the US is left to refine much of this crude and then export it, causing an increase in products-tanker movement ex-US Gulf to the South American, Central American and West African zones,’ the firm wrote in its latest tanker-market forecast.  ‘Although the US oil surge is having a positive effect on US products-tanker movement, it is hurting the already weak European refining and products-tanker markets, and could prove to have longer-term negative effects on European refiners if current conditions persist.”