Lloyd’s List: Rising US Crude Output Cuts Global Tanker Demand

“The tanker market is becoming ever more reliant on Asia to offset the decline in tonne-miles generated from US imports. . . . With the US no longer the default back-up, the tanker market is becoming ever more reliant on Asia to offset the decline in tonne-miles generated from US imports so developing countries such as China need to keep increasing their appetite for oil. Perhaps more worryingly for US import levels, is talk from Washington about a potential crude oil release from the country’s Strategic Petroleum Reserve, allegedly in a bid to lower international oil prices and consequently gasoline prices for US consumers in the run up to the its next election. New York-headquartered Poten & Partners has argued that with a [government] manipulated price drop an oil price contango could open up and create demand to store crude at sea on tankers, but this remains to be seen.”