Suez-min?

Acute bleeding in the refining complex around Philadelphia has started to erode a stalwart tanker trade. The West Africa to US Atlantic Coast Suezmax trade has been facing its demise since Sunoco’s announcement to exit the refining business and the closure of ConocoPhillip’s trainer facility. Poor refining margins caused by persistent high prices for sweet West African crude oil have pressured refiners for some time now (see “Importing is Light Sweet Sorrow.”) The convention of million barrel cargo stems in West Africa and draft restrictions on the Delaware River make Suezmaxes a logical choice to service this trade. Now, the ships that were longstanding beneficiaries of a somewhat niche business have quickly become its victims. Download here