Strong demand of crude oil tanker market and stable freight rate before the end of the year

- Feb 20, 2020-

Drewry, a British shipping consultancy, recently predicted that after a sharp rise in crude oil prices in October this year, the crude oil ship market will tend to stabilize in the future, which will last until the end of 2019.            According to deluri, due to the strong seasonal demand for oil and the positive impact of IMO 2020 sulfur limit order on the operation of global refineries, it is expected that by the end of 2019, the market demand for oil tankers will remain strong, and the freight rate is unlikely to fall significantly.            

In addition to the seasonal growth factor of crude oil demand, the recent increase of US crude oil pipeline capacity is also expected to boost US crude oil output to Asia, which will help to increase the ton sea demand of crude oil ship market. Although US crude oil production rose to 1.8 million barrels per day in 2019, growth could fall to around 1 million barrels per day next year, Mr. deluri said.