Chinese floods impact tanker trades

The worst floods in China for 100 years have been affecting tanker trades. New York-based tanker brokers Poten have warned in a report that reduced demand due to the flooding will have a negative impact on economic recovery from the impact of the Covid-19 pandemic. It said that this would probably lead to lower crude oil imports in the coming months. With Chinese inventories are already high as a result of higher purchases levels in April and May, this could lead to headwinds for the crude oil tanker sector, Poten warned, predicting that “surplus petroleum product availability will lead to increased product exports and affect refining margins in the region. This, in turn, could help the product tanker market”.