Japanese Utility Demand Supports Aframaxes

Although the Japanese government has approved the start-up of two nuclear reactors in July in order to avoid power shortages during peak summer demand, the removal of virtually all of Japan’s nuclear generating capacity following the Fukushima disaster in 2011 should continue to support LNG, fuel oil and crude imports in the medium term. Shifting import sourcing patterns for fuel oil and crude for direct burning at Japanese utilities have been supportive for Aframax demand, and this should continue, despite modest declines from the nuclear start-ups. Download here