Representatives of the tanker company, Scorpio Tanker, have stated their expectations that Kuwait will ship 640,000 barrels per day of refined petroleum products by the end of the year when the three refining lines are fully operational in the Al-Zour refinery. This will include medium products of refining and gasoline, which will be shipped to distant markets west and east of the Suez regions.
However, the “Standard & Poor’s Commodities Insights” website has reported a decrease in the quantities of shipments during the month of April, which Denker Nelson attributed to maintenance work for international refineries. The link between the regional markets for refined products was also noted as playing a key role in the lack of supply, with a large part of the imports coming from long distances due to the continued European sanctions on Russia affecting the supply chain.
Scorpio Tanker expects demand to exceed supply in the next two years as a result of changes in the scene of refineries, where some of them were suspended or switched to import stations or biofuel facilities. However, “Standard & Poor’s” analysts have warned that the demand for oil in the United States and Europe will suffer from a contraction as a result of the economic slowdown, with the demand for oil declining by 250 thousand barrels per day this year.
Despite this, oil demand for the whole of 2023 is estimated at 2.2 million barrels per day, with higher exports of refined products from India to Europe supporting long-range tanker operations. Refinery maintenance in the United States is also expected to increase imports of the American West Coast from North Asia and Singapore, which will enhance the operations of medium-haul carriers in the East.
As the global economy continues to evolve, the demand for oil and refined petroleum products will shift, impacting the global supply chain and requiring companies like Scorpio Tanker to adapt and adjust their operations accordingly.
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