Tanker Market: Thinning Orderbooks, Higher Production, and Increased Ton-Mile Demand

teekay lightering tankers
(c) Teekay Corporation

Teekay’s Manager of Research, Christian Waldegrave notes that following the past few months of weakness within the crude tanker market as a result of refinery maintenance and a decrease in OPEC production, there is a light at the end of the tunnel as oil refineries come back on line and as China builds their stockpiles with record oil imports.

crude tanker spot rates
Courtesy Teekay

This increase will also be supported by an increase in long-haul tanker traffic between west Africa and China, which is expected to be the highest of all time next month. This will in turn boost the Suezmax market notes Waldegrave.

Watch Christian Waldegrave’s full report here:

Into 2014, Waldegrave sees continued improvement as the orderbook for crude tankers thins out, particularly in the Aframax and Suezmax sectors.

The following graphs are courtesy of Teekay:
crude tanker orderbook teekay