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Refining Margins Seen Supporting Crude-Tanker Demand at SSY

Following are comments from Simpson, Spence & Young Ltd., the world’s second-largest shipbroker, on the effect of refining margins on demand for tankers hauling crude oil.

The company’s consulting unit commented in an e-mailed report today. Crude is referred to as dirty in the industry, while clean denotes refined products such as gasoline.

“In many refining centers, product-price declines have not kept pace with recent crude-price falls. Margins have remained firm, and in many cases improved as feedstock costs have dropped. With oil demand increasing along with seasonal expectations, a sustained period of firm margins could prompt refiners to boost utilization rates, adding to crude imports and dirty tanker demand.”

To contact the reporter on this story: Isaac Arnsdorf in London at iarnsdorf@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

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