April 3, 2020
Floating storage on product tankers is on the rise
In the last few weeks, since the collapse of the OPEC+ deal and the various announcements of oil production growth by Saudi Arabia and other producers, the focus of the oil markets has been squarely on the crude oil tanker market and VLCCs in particular. Record spot rates and rapidly rising floating storage levels dominated the headlines.
However, on the oil demand side of the equation, it is not the crude oil producers that are on the frontlines. It is the refiners. They are the ones that are directly and immediately exposed to global demand destruction as a result of Covid-19 and the isolation measures that are put in place all over the world.
The struggles of the refining industry and the direct impact that will have on product tanker markets will be the topic of this week’s Poten Tanker Opinion.
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