A thread on #oil #product #tankers with excerpts from the latest Gibson weekly report:
hellenicshippingnews.com/wp-content/upl…
"Refinery rationalization is back on the agenda. With a prolonged weakness in refinery margins due to Covid-19 related demand destruction and an uncertain future..."
hellenicshippingnews.com/wp-content/upl…
"Refinery rationalization is back on the agenda. With a prolonged weakness in refinery margins due to Covid-19 related demand destruction and an uncertain future..."
"...for hydrocarbon consumption, many refiners have decided to throw in the towel, choosing to either sell, close, or convert their refining assets. The impact is not just in Europe, but global. Aging capacity in the United States, Asia and Australia is also under threat."
"On a global basis, up to 2.6 million b/d of crude distillation capacity is at risk of full closure, or conversion to other purposes. But what does this mean for the tanker market?
In reality, it is unlikely to be a game-changer in the near term."
In reality, it is unlikely to be a game-changer in the near term."
"Globally, refining capacity is in excess and by rationalizing capacity, those refineries that survive will see improved margins and higher run
rates than would have been the case."
rates than would have been the case."
"Further, as increased capacity shifts to the East of Suez, and regional crude production stands to decline, tonne mile demand is expected to benefit. Likewise, reduced capacity in Europe and Australia should create new incremental product import opportunities."
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