5th International Oil Tanker Shipping Summit 2015

May 20, 2015

Event Background

Who will attend

The year of 2014 into 2015 witnessed the constant decrease of global oil price, high extraction costs of US shale oil, OPEC claiming no reduction in oil output and conflicts in the Mid-East. How will the international oil price change in 2015?

According to OPEC, world crude oil demand will reach 92.3 million barrels per day and Asia will be the biggest market driver. As China and India are constantly increasing their SPR, when will their demand reach the peak? Crude oil futures are soon to be launched in Shanghai FTZ. How will it enhance China’s pricing power in the global oil market? By the end of March, NB orders for VLCC reach 99 and there are 72 Suezmax orders. Meanwhile, 15 to 20 FSO tankers came back to the shipping market. Will all these factors shorten the boom of oil tanker market? Demolition subsidy and other policies from Chinese government encourage Chinese ship owners to build large crude oil carriers. Some Chinese oil companies even started to raise their own VLCC fleet. How will Chinese VLCC ship owners impact the global oil tanker shipping market? Product tanker shipping capacity is on a continuous increase and MR and LR1&2 are greatly favored. The increasing demand for longer distance transportation of product oil and the decline in the European and Japanese refinery field are the two factors that spur ship owners to have more LR tankers. By the end of December, 2014, the number of LR1&2 tankers reached 583. On the other hand, as overcapacity of product oil is already a severe problem, China is in want of enlarging its product oil exportation. How will product tanker market develop in the future?


Source from : CNSS