Empty supertankers reveal truths about today’s oil market
In normal times, the vessels would be filled with heavy, high-sulphur Middle East oil, but now 12 vessels have nothing but seawater for stability
London — They are slowly ploghing their way across thousands of miles of ocean towards America’s Gulf of Mexico coastline. As they do, 12 empty supertankers also reveal a few truths about today’s global oil market. In normal times, the vessels would be filled with heavy, high-sulphur Middle East oil for delivery to refineries in places such as Houston or New Orleans. Not now though. They are sailing cargo-less, a practice that vessel owners normally try to avoid because ships earn money by making deliveries. The 12 vessels are making voyages of as much as 33,800km direct from Asia, all the way around SA, holding nothing but seawater for stability because Middle East producers are restricting supplies. Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty. “What’s driving this is a US oil market that’s looking relatively bearish with domestic production estimates trending...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.