Tanking sector looks to ride the storm
Policy changes, the economic slowdown and the vagaries of the oil market are assailing the global tanking business. A recovery could follow, but not until around the start of the next decade
Reductions in upstream and downstream investment because of low oil prices and tightening credit availability are likely to undermine long-term growth in the tanker market. In the nearer term, falling consumption of oil this year and production cuts from Opec will also result in lower tonnage demand. If this is not evident yet, it is because short-term factors have helped give some temporary relief to the tanking sector. A seasonal recovery in OECD oil demand at the start of the winter season helped. And low freight rates have also provided temporary support to tonnage demand so far in 2009. So has the oil market's contango – which makes prices for near-term delivery oil cheaper than oil to
Also in this section
23 April 2026
The addition of an oil pipeline to the Power of Siberia 2 gas project could ensure deliveries of Russian oil to China, materially shorten logistics lines between West Siberia and final customers, and—amid disruption in the Strait of Hormuz—offer a land-based export route that reduces exposure to maritime chokepoints
23 April 2026
There is a clear push to bolster exports to Asia amid uncertainty around its North American neighbour, but there are limits to the benefits from the energy crisis
23 April 2026
Shell made the play-opening discovery in Namibia’s Orange basin back in 2022, but its next well could decide whether the project can actually be commercialised
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
