MR tankers in the Atlantic are facing a bumpy road after the first week of April, mainly driven by tonnage oversupply. However, the return of transatlantic gasoline demand could act as a deus ex machina and stage a revival for freight rates on both ends of the Atlantic Basin.
From an oil and shipping point of view, the Russia/Ukraine war may curtail or merely rerout the flows of Russian oil barrels, or even keep them largely unchanged. The importance of diesel may even top crude, with limited alternatives speaking for continued Russian-European trade.
European refiners' thirst for light-sweet crudes has propelled sweet crude premiums in recent weeks. As these premiums continue to test historical highs, it raises questions as to whether product prices are catching up fast enough to support this price momentum.
How CPP dynamics has shaped the MR freight market on the Atlantic as well as what is in store for the region in the short to medium term?
As we witness US gasoline cracks moving toward levels matching 2021 highs, a year hit by severe unplanned supply problems and high refined product demand we can expect to see only further limitations to supplies as spring refinery maintenance ramps up across the globe and demand is set to grow for all refined products in a world emerging from the pandemic.
Vortexa analyses the freight rate development of 4 vital CPP routes and investigates how the cross-vessel class dynamics could drive a domino effect on fleet repositioning.
Latin America has been a key importer of road transportation fuels in 2021. However fundamentals, seasonality and shipping indicators are signaling that the demand pull may be behind us.
Vortexa uses flows data to illustrates how strong gasoline demand combined with steep petrochemical demand feedstock is driving up the demand for naphtha, making refiners max light end yields at the expense of middle distillate.
Vortexa shows diverging trends for crude arrivals heading to key Atlantic Basin buyers.
Vortexa outlines how supply and demand dynamics appear to be improving for LNG markets in a supportive price environment
Vortexa outlines how naphtha has had a strong demand recovery but increasing demand for road fuels gasoline and diesel could incentivise refiners to adjust their yields to make less naphtha.
Vortexa outlines how Latin American countries are increasing imports of crude and refined products whilst simultaneously exporting refined products into storage hubs, suggesting an oversupplied region.
Vortexa outlines how the the peak in European gasoline loadings destined for the Atlantic Basin will slow and why.