VLCC tonne-miles from AG and West Africa to China exhibiting noticeable rise since May
The first week of July ended with rates in the crude oil freight market coming under pressure, while weaker sentiment in clean tanker freight rates continued. Interestingly, Chinese oil demand is driving up tonne-mile volumes for VLCC routes between the Arabian Gulf (AG) and West Africa despite signs of a downward correction. VLCC tonne-miles from Wafr and AG to China have increased significantly in July since early May.
As for the long-term outlook for oil demand, according to the June report from OPEC, the organization forecasts robust growth in global oil demand in 2023. The report cited an estimated growth rate of 2.35 million barrels per day (bpd), a 2.4% year-over-year increase. This surge in demand represents a significant recovery from the lull following the coronavirus pandemic, which had a dampening effect on global oil consumption.
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