In October 2014, we noted the massive surge (amid a slowing economy) in VLCCs bound for China
as they began rebuilding their Strategic Petroleum Reserve, buying the
newly low priced crude providing ‘artificial’ demand not reflective of
actual current activity. Crude prices continued to drop and China-bound
tankers remained high. But, as Bloomberg notes, this week saw
the number of supertankers heading to China drop to 62 – the lowest
since September 19th (before China began its restocking efforts) –
strongly suggesting that ‘artificial demand’ has been removed from the
global oil market.
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