EsA series of three oil tankers will ship gasoline from Asia – including China – to the U.S. in March, Bloomberg reports. The global trade in refined oil products, including gasoline, is becoming increasingly complex as traders seek to profit from varying regional prices. An oversupply in tankers, which has pushed down rates as outlined in Panjiva research of February 14 and which continued in the past month, has made it cheaper to complete such trades.
Panjiva data shows Chinese exports of light oils (including gasoline) and distillates reached their highest since at least 2013 in December of $2.41 billion after climbing 52.2% and 28.0% respectively. That was partly helped by rising oil prices (up 11.5% on a year earlier in December) increasing the value of all products.
Source: Panjiva
The U.S. has not been a significant destination for Chinese light oils so far, with a single shipment made in June 2016. The largest driver of growth has been shipments to Singapore, which accounted for 65.9% of the total in December.
Source: Panjiva
