The Missing Link

As highlighted in the last Weekly Tanker Opinion, Royal Flush, weakness in the crude oil freight markets continues to be pervasive. The notion of “too many ships” is often thrown about as an easy explanation for this phenomenon, but a look at worldwide crude oil consumption certainly helps to make its case. Overall, crude oil consumption worldwide is at record levels. The International Energy Agency (IEA) reports that crude oil demand is 88 million barrels per day in the first quarter 2011 (including gas liquids), up from 86 million barrels in the same period last year. The United States, however, continues to be conspicuously remiss in their contribution to incremental demand. Download here