Close the Window - It is Cold Outside! (March 6, 2015)
Product tankers facilitate global arbitrage trades
Over the last couple of years, the U.S. has developed into one of the largest exporters of oil products. Increasing domestic crude production and access to cheap shale gas has improved the international competitiveness of U.S. refineries. At the same time, the U.S remains a significant importer of oil products. In 2014, the U.S. exported 3.12 Mb/d of refined petroleum products and they imported 1.74 Mb/d (see Fig. 1). As a result, arbitrage opportunities regularly open up in the US for refiners and traders. Recently, several unrelated issues have created arbitrage opportunities on both the East and West Coast of the United States.