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Tuesday, November 13, 2018

The product tanker market is expanding

(2005 is a projection based on figures until Nov.)

Product imports to Europe are increasing. The biggest sources of imports from outside Europe have been the Former Soviet Union with 1.1 mbd, and OPEC with some 0.8 mbd. If you include intra-European imports, then the biggest supplier of oil products to Europe in 2005 was The Netherlands with some 1.2 mbd. Germany and the U.K. also supplied 0.8mbd each.

U.S. gasoline imports have doubled this decade. According to the International Energy Agency (IEA), U.S. product imports from Europe have increased from 0.24 mbd in 1998 to 0.72 mbd in 2005. The U.S. imports products from a large variety of sources, the biggest in 2005 being Canada (0.37 mbd), Trinidad & Tobago(0.25 mbd), and Venezuela (0.23 mbd) (all figures based on 11 months). 

The product tanker market has benefited from a tight refinery capacity resulting in comprehensive arbitrage trading of products. Refinery capacity will probably remain tight over the next couple of years, but there are many refinery projects being launched in the Middle East, South Korea, India, China and other places.  

In Tanker News on the INTERTANKO web you will find information on some of these projects. Even if all of the projects may probably not materialise, the refinery situation could still look quite different in 2010 compared to today. Building of new large refineries may change both the crude and product tanker markets - for example, South Korea appears to have ambitions to become a new refinery hub, which will result in increased crude oil imports. 

Contact: Erik Ranheim