Libyan troubles lift tanker demand
Oil-consuming countries’ shift to using oil from the Gulf, West Africa and other regions to replace lost Libyan production is providing a welcome boost to the earnings of struggling oil tanker operators, according to oil tanker owners and analysts.
Importers have turned to the new sources after Libya’s production fell sharply following the evacuation of many foreign oil workers as a result of the uprising against the 41-year rule of Muammer Gaddafi.
The increased reliance on oil from West Africa and the Gulf as a result has boosted tankers’ earnings because the cargo has to travel far further to the main consuming centres in Europe, Asia and North America.
Herbjørn Hansson, chief executive of New York-listed Nordic American Tanker Shipping, a significant oil tanker operator, said the unrest would have a positive impact, at least in the short term.
If customers switched from buying Libyan crude to West African, that could boost demand for Suezmax tankers, which carry about 1m barrels and are normally used from West African ports. It could depress, meanwhile, demand for Aframaxes, which carry about 750,000 barrels and are normally used from Libyan ports. “In my judgment ... this political unrest may give shipowners some good times in the short term – but, generally speaking, this is not good for the markets,” Mr Hansson said.
More: ft.com |
