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.”