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Record Number of Supertankers Enroute to Collect US Oil

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Record Number of Supertankers Enroute to Collect US Oil

A record-breaking number of supertankers are heading towards the United States to load oil, as shipowners seek to take advantage of the nation's increased crude exports. Data gathered by Bloomberg shows that forty-eight vessels are bound for the country in the next three months, marking the highest number in at least six years. This surge in tanker traffic reflects the changing energy landscape, as the US continues to pump more crude than ever before, while the Organization of Petroleum Exporting Countries (OPEC) and its allies implement supply curbs to stabilize the market. US crude exports have experienced a significant surge this year, according to government data.

Changing Energy Landscape

US producers are increasingly sending low-sulfur "light-sweet" oil overseas, while domestic refiners prefer heavier grades that yield more diesel-type fuels. The lifting of decades-old restrictions on crude exports in 2015 has facilitated this shift in the US energy market. Shipments from the US Gulf Coast, the primary exporting region, are expected to rise by 100,000 barrels a day year-on-year next month to 4.1 million barrels a day.

Ballasting and Earnings

The influx of supertankers heading to the US Gulf includes ships that are ballasting, meaning they are traveling to the region without any cargo booking. This industry practice reflects the anticipation of stronger demand for winter, which could result in higher earnings for these tankers upon reaching the US. The shifting dynamics in the oil market, driven by US crude exports and OPEC+ supply curbs, are attracting a significant number of supertankers to the Atlantic region. In conclusion, the surge in supertankers heading to the US to collect oil highlights the increasing importance of the nation's crude exports. This trend reflects the changing energy landscape and the efforts of US producers to optimize their slate of oil exports. The influx of tankers also suggests potential opportunities for higher earnings in the winter season, driven by anticipated demand.

Hot Take: The Impact of the Surge in Supertankers on New Businesses

The record-breaking number of supertankers heading to the United States to load oil signals a significant shift in the energy landscape, with potential implications for new businesses. The surge in US crude exports, driven by the lifting of restrictions and increased production, presents both challenges and opportunities.

Opportunities and Challenges for New Businesses

For new businesses in the energy sector, this trend could open up new markets and demand for low-sulfur "light-sweet" oil. However, it also means increased competition and the need for strategic positioning to capitalize on these opportunities.

Winter Demand and Earnings

The practice of ballasting, where supertankers travel to the US without any cargo booking in anticipation of stronger winter demand, suggests potential for higher earnings. This could present lucrative opportunities for new businesses involved in oil trading or logistics. In conclusion, the record number of supertankers enroute to collect US oil underlines the shifting dynamics in the global oil market. New businesses need to stay agile and adaptable in this changing landscape, seizing opportunities while navigating potential challenges. The ability to anticipate and respond to these trends could be a key determinant of success.
Story First Published at: https://financialpost.com/pmn/business-pmn/a-record-number-of-supertankers-is-headed-to-collect-us-oil
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