Tanker: China and India offers market support
CHarse demand for despicable and India will continue to support demand in the tanker market. In his latest weekly report, Shipbroker Intermodal said that “the raw tanker market in September saw a marked increase, with the tariff up to their highest levels for years. The increase in crude oil imports from Asia, supported by USG-Asia Arbitration, increasing PORA, while increased production, while stockpiling and pre-season candle rising. India to secure barrels immediately “.
According to Intermodal’s Senior Analyst, Mr. Nikos Tagoulis, “This surge in demand put pressure on vlcc supply, constrained by increased enquiries and long-haul voyages, reducing active fleet. Structural factors compounded this tightness: the vlcc fleet is expected Average Vessel Age of 13 Years versus a Historical Norm of Approximately 10, and Roughly 20% of Tonnage Over 20 Years Old.
Source: Intermodal
Mr. Tagoulis added that “In September, Chinese raw imports rose around 6.5% yoy, with most volumes sourced from the Middle East and important contributions from Brazil, West Africa and Russia. The increase in imports through Indonesia shows that the constant climbing appears in the market. Consumption, increases concerns about the sustainability of demand.
“On the contrary, Indian raw imports remain tough, supporting expanding domestic purification and consumption activities. According to the Ministry of Oil and Gas, high-speed diesel (HSD) rises 23% yoy in August, while summer exports that are locked up on it are higher share, which is encouraged by higher wandering and higher share. For exports, indirectly supports the demand for crude oil.
Source: Intermodal
“Both China and India support the raw market, although their demand profiles are different. Chinese imports are currently increasing due to strategic inventory, but the duration of this demand remains uncertain. Meanwhile, India’s demand is more sustainable, supported by purification of expansion, efficiency driven by policies, and Ra-Ra Ra-Ra. 6.7% of 6.3%, supported by domestic demand and policy reforms, referring to the import of oil.
He concluded that, “In short, Chinese raw imports look more fragile, most of which are driven by hoarding in the midst of economic headwinds and rapid expansion of the EV sector, while stable growth prospects in India and expand purification capacity seem to have a good position to continue to support the rough tanker market, if Chinese demand begins to facilitate”.
Nikos Roussanoglou, Hellenic Shipping News worldwide
