Vortexa Energy Market Update 2022
Vortexa were proud to host the Energy Market Update 2022 this week, as a pre-IE Week celebration event to bring together industry leaders, held in a hidden venue in Mayfair, London.
Joined by over 80 attendees, guests experienced a market-leading presentation from Vortexa Chief Economist David Wech, followed by a panel with Vortexa CEO Fabio Kuhn and The Baltic Exchange CEO Mark Jackson reflecting on industry developments in the energy and freight markets, followed by world-class wine & canapés.
The first session titled Tightness in crude and products, spare capacity in shipping presented by David Wech, highlighted recent market dynamics in the oil and gas markets, backed by Vortexa Analytics. The key takeaways were:
- The oil market is running short of spare capacity. OPEC+ exports remain range-bound for fourth month in a row, and the lack of freely available capacity is also a big issue in refining
- New grassroot refineries and potential supply comebacks from US shale and Iran may alleviate the situation, but not before H2 2022
- Up- and downstream players may struggle to meet demand, giving room to further price/margin increases, risking (or possibly requiring) demand destruction on the way
- Demand upside for fuel oil and jet, concerns on naphtha/LPG
- Refining maintenance and outages to be closely watched
- Gasoline taking lead from diesel
- The system is operating at the limit, making further stockdraws unlikely and questioning the relationship with market structure
- In difference to crude and product, tanker markets show ample capacity and poor pricing
The event was live-streamed on the night. To watch the recording of David’s presentation and the panel with The Baltic Exchange, fill in the form below.