Shipping’s “Katrina” Effect

Among many generous displays of solidarity since the tragedy of Hurricane Katrina began to unfold on August 29th, the 26 International Energy Agency (IEA) member nations have collectively agreed to supply the United States with 60 million additional barrels of crude and crude products over the next 30 days. This week we examine the specifics behind these additional supplies, as well as the shipping impact of these generous contributions. How might 2 million incremental barrels per day of crude and products affect tanker demand in the short term?