Ship & Bunker: Booming Tanker Market Set for Best Q4 in Years, Say Analysts

22 Sep 2015: “‘China is a significant driver for tanker demand given its place as an oil importer,’ said Erik Broekhuizen, head of tanker research and consulting at Poten & Partners. “‘As the U.S. has consumed less imported crude due to the shale oil boom now, that crude from West Africa or South America is going to Asia.’ “Broekhuizen says that, in addition to smaller vessels and specialised product carriers that transport refined petroleum products including jet fuel and diesel, there are about 730 VLCCs currently operating on the high seas. “With the significant decline in oil prices, if growth rates stay pretty much the same, the ship owner is much more profitable,” explained Broekhuizen. “‘When oil was $100 last summer bunker prices were close to $700 per metric tonne. Now it’s closer to $250.’ “Broekhuizen also notes that Iran could further boost crude tanker demand if the estimated 500,000 to 700,000 additional barrels of crude per day is added to the market once sanctions are lifted. “‘This will be a double bonus. Some [Iranian] ships will hit the market, but it will be a net positive for tanker market.”‘