Lloyd’s List: VLCCs Still in Demand Even as US Looks to Cut Oil Reliance

“The rise in North American production in recent years has even created a glut of oil stored at Cushing, Oklahoma, which has pushed down the price of West Texas Intermediate oil compared with the international benchmark Brent crude. However, the imminent expansion of Motiva Enterprises’ refinery in Port Arthur on the US Gulf coast will revive demand for crude cargoes shipped on VLCCs from the Middle East, according to shipbroker Poten & Partners. The broker foresees 13-15 VLCCs would be needed annually to ship Middle Eastern crude to the expanded Port Arthur refinery. Motiva’s refinery expansion by 325,000 barrels per day “could help lend vital life support to the VLCC market by creating a new element of sustainable westbound demand,” said Poten & Partners.”