Volatility to increase in tanker market following oil price war
Crude oil prices plunged by more than a third in the past week after OPEC+ failed to agree on production cut as demand softened in the aftermath of coronavirus (COVID-19). In its recent report, the IEA estimates global oil demand at 99.9 mbpd in 2020, which is around 90,000 bpd lower than in 2019 and a sharp downgrade from the agency’s forecast in February, which predicted global oil demand will grow 825,000 bpd in 2020. 30 Jan 2020: India’s exports of Jet Fuel/Kerosene to be hit with anticipation of a rise in the country’s demand in 2020
The IEA in its latest OMR report projected a 7% growth in India’s jet fuel demand in 2020, in view of wider economic growth. After plummeting to less than 5% in 3Q19, the country’s GDP is expected to grow 6% this year owing to government corporate tax cuts, coupled with a plan to sell low-performing and loss-making state-owned companies such as Air India where the government has a 100% stake.09 Jan 2020: Risk premium for tankers to soar amid rising tensions in the Middle East
The recent escalation in the unrest between Iran and the US has raised fears of a wider war in the Middle East. Already heightened geopolitical tensions in the region have resulted in a surge in oil prices, with Brent surpassing the $69 per barrel mark.
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