Decline in U.S. crude oil exports to China from May puts downward pressure on VLCC tonne-mile growth
The second week of July has witnessed a sustained decline in crude tanker freight rates, which is further compounded by the challenges posed by the summer season on the market. Particularly, Chinese oil demand from the United States has significantly dropped compared to the levels seen a year ago. Analyzing the chart provided, it becomes evident that both May and June marked the lowest monthly volume of U.S. crude oil shipments to China via Very Large Crude Carriers (VLCC) tankers since early last year.
This recent trend of VLCC shipments carrying U.S. crude oil from the U.S. Gulf (USG) region has consequently resulted in a downward trajectory in the growth of dirty VLCC USG tonne-miles destined for China. This decline is notable, especially after reaching its peak in VLCC US tonne-miles just before the end of May.
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