Redefining Refining
In recent weeks, headline refining margins have surged to record levels, whilst clean tanker rates have also tested or exceeded previous records depending on the region/route. Rates remain volatile and with the International Energy Agency predicting that global refining runs will surge by 4.4 million b/d from April to August this year, owners have good reason to be optimistic in the short term. Yet, oil demand is torn between a post covid recovery and the economic fallout of the war in Ukraine, the reallocation of trade due to Russian sanctions/self-sanctioning and China's zero covid policy. All these factors complicate the outlook, with downside risk on the horizon. However, with the invasion redefining oil trade, the refining landscape faces its own redefinition which will impact the product carrier market for years to come.
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The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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