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Cautious Refiners May Deal Major Blow To Oil Tanker Market
By Tsvetana Paraskova - Mar 17, 2021, 2:00 PM CDT
U.S. gasoline demand has rebounded to nearly pre-pandemic levels, but after a horrendous 2020, American refiners are looking to cut costs wherever and whenever possible in light of the still-sluggish fuel demand recovery in some key export markets for U.S. refined petroleum products.
U.S. refiners have shunned hiring tankers for long periods under the so-called
time charter contracts to minimize expenses at a time when the demand picture outside the United States is still a risky unknown.
“The last thing you need is to get stuck with several millions of dollars worth of unused vessels for the year. We have had several cases of that,” a U.S. refining executive told Reuters.