Gibson: Lifting US Oil Export Ban a Mixed Blessing for Tanker Market

The crude tanker market stands to benefit if restrictions on U.S. crude exports are lifted, as it will support more seaborne trade both in and out of the country, according to U.K.-based shipbroker E A Gibson.

In terms of exports, light crude oil would be likely to head across the Atlantic to Europe, lowering the region’s “appetite” for light crude from other sources, primarily West Africa, Gibson predicts.

This in turn would free additional West African volumes for long haul shipments to Asia Pacific customers.

There is also a possibility that U.S. crude could also head directly to Asia.

In contrast, changes in legislation could be bad news for the product tanker market, as the Energy Information Administration (EIA) suggested in its recent report that refiner margins would be under downwards pressure without the current restrictions on crude oil exports.

If that is the case, then freeing up more crude oil for exports will at the very least limit the growth in products exports, both to Latin/South America and across the Atlantic Basin, according to Gibson.

Recently, committees of both the U.S. Senate and U.S. House have initiated and passed legislation seeking to lift the ban on crude oil exports. It is expected that the full U.S. House will consider this bill later this month.

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2019 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >

Electric & Hybrid Marine World Expo Conference 2019

Electric & Hybrid Marine World Expo Conference is the world’s only international conference…

read more >