The tanker market could face headwinds due to a slump in demand for many years from now, as a result of the decarbonisation plan which is intensifying in the segments such as aviation, automobile, oil, and shipping themselves. The reports are produced by shipbroker Allied Shipbroking.
The oil consumption for the current year is expected to remain low as petroleum products demand has plunged since the outbreak of the pandemic. The EIA data has indicated that global oil consumption will touch the 92.91 million bpd mark this year, which is 8.5 percent lower than in 2019 and marks the lowest point since 2013. Global oil production has tumbled to 94.42 million bpd, leaving a surplus in the market.
According to Allied analysts, the pandemic has walloped vehicle movement owing to restricted travel. However, the reports that the use of electric vehicles surged by 727,000 last year, marking a structural shift to EVs from petrol vehicles. China has seen a surge in this trend, marking a 1 percent slump for gasoline and 5.5 percent for distillate fuel between 2010 and 2019.
The demand for petrol in Europe has also tumbled 18.7 percent between 2010 and 2019, while diesel volume decreased by 1 percent. The demand for jet fuel this year is expected to remain low. There is a 38 percent slump in jet fuel demand in the US with consumption reaching a record-low.
The global shipping and ports industry has been affected by the pandemic. However, a possible vaccine discovery and roll out brings optimism for a rebound.