Splash 247: The outlook for the LPG trades

June 16, 2020

“There is a possibility that VLGC earnings may decline further in the coming weeks because of lengthy open positions and many re-lets amid expected lower exports from key exporting regions. Although there has been a premium for VLGCs trading in the West compared to the East markets, unworkable arbitrage most likely is expected to wipe out the premium levels,” says Shantanu Bhushan, LPG consultant at Poten & Partners.

Poten expects less than 1% increase in seaborne supply of LPG in 2020 and expects it to remain almost at the same level in 2021, in view of declining production and exports from the US, while no upside expected from the Middle East.

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