Seaway Oil Torrent Boosts Gas Cargoes as Scorpio Rises: Freight
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The unprecedented flow of crude from the U.S. storage hub in Cushing, Oklahoma, to Gulf Coast refiners is poised to boost gasoline exports and tanker demand when most of the shipping industry is still losing money.
The Seaway pipeline reversed oil flows on May 17 for the first time since it opened in 1976 and will supply as much as 400,000 barrels a day by 2013. That will cut costs for refineries and encourage them to make more products for export, said Jonathan Chappell, a shipping analyst at Evercore Partners Inc. in New York. Shares of Scorpio Tankers Inc., which operates 19 of the vessels, will rise 56 percent in 12 months, the average of nine analyst estimates compiled by Bloomberg shows.