GLOBAL oil demand is expected to grow 1.5 per cent in 2018 to over 99 million barrels per day (bpd) with significant gains projected in the middle-light end of the barrel, according to McQuilling Services 2018 Mid-Year Tanker Market Outlook Update.
The longer-term outlook calls for 1.1 per cent gains per annum through 2022 amid strength in jet fuel, LPG and naphtha, reports London's Tanker Operator.
Next year, additional crude supply in the Middle East is likely to stem from OPEC producers (ex-Iran), pushing global supply growth to two million barrels per day in 2019.
Global crude oil supply growth is projected to add over 5.3 million barrels per day through 2022 with added support from Russia and Brazil, while Venezuela will remain pressured.
McQuilling expected global HSFO prices to average $386 per tonne this year and fall to $345 per tonne in 2019 considering demand side impacts from upcoming global sulphur regulations (testing, inventory builds).
Floating storage for fuel oil is likely to rise going forward, while excess Iranian crude will also likely be stored on floating tankers. Crude and residuals transport demand is expected to total just over 10.8 trillion tonne/miles in 2018, the highest ever recorded.
Total VLCC demand in 2017 amounted to about 6.6 trillion tonne/miles, up 5.5 per cent from 2016, as the growth of Atlantic Basin exports offset stagnating demand from the Middle East to the Far East.
The longer-term outlook calls for 1.1 per cent gains per annum through 2022 amid strength in jet fuel, LPG and naphtha, reports London's Tanker Operator.
Next year, additional crude supply in the Middle East is likely to stem from OPEC producers (ex-Iran), pushing global supply growth to two million barrels per day in 2019.
Global crude oil supply growth is projected to add over 5.3 million barrels per day through 2022 with added support from Russia and Brazil, while Venezuela will remain pressured.
McQuilling expected global HSFO prices to average $386 per tonne this year and fall to $345 per tonne in 2019 considering demand side impacts from upcoming global sulphur regulations (testing, inventory builds).
Floating storage for fuel oil is likely to rise going forward, while excess Iranian crude will also likely be stored on floating tankers. Crude and residuals transport demand is expected to total just over 10.8 trillion tonne/miles in 2018, the highest ever recorded.
Total VLCC demand in 2017 amounted to about 6.6 trillion tonne/miles, up 5.5 per cent from 2016, as the growth of Atlantic Basin exports offset stagnating demand from the Middle East to the Far East.