29 January 2019
US SANCTIONS on Venezuela’s state-owned energy company Petroleos de Venezuela are expected to reconfigure trade flows and boost tanker demand, according to analysts.
The US was the biggest buyer of Venezuela’s heavy crude oil last year, at 500,000 barrels per day, followed by India, at 300,000 barrels per day, and China, which imported 277,000 bpd.
A switch from exporting to the US to Asia will reshuffle the tanker markets, Poten & Partners said in a note. “It will significantly add to tanker tonne-mile demand with long-haul very large crude carrier trips replacing short-haul aframax voyages,” it said.
But Venezuela may find it difficult to and buyers to make up the loss of the US market.
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