Oil Shipping

The pandemic has been impacting many industries the world over, with crude oil shipping affecting a variety of markets due to the need for energy and fuel. The International Energy Agency (EIA) released a report on the status of the market. The slowing down of COVID-10 virus spread offered hope in recoveries of global oil shipping demand and supply.  Further, it was also expected that the supply of oil will be greater than demand expected with the new year expected to have upwards production rates especially in the likes of Brazil, Canada and the USA.

The end of 2021 showed that in terms of production and oil shipping, it became a bit more stable with demand recovery a possibility in the new year. The likeliness of more lockdowns and restrictions will have lesser impacts in the future than initial lockdowns experiences in early 2020 to mid-2021. The need for economic recovery has been prioritized over restricted movements, and thus it is expected that oil shipping needs will be higher in the new year.

At the onset of the pandemic, due to the lockdowns, prices for oil and fuel fell, with demand decreasing drastically and economies opting for lesser orders. However, this also meant that oil shipping would decrease with trade oil and oil products requirements dipping from various countries. Yet, when the need suddenly arose with different countries lifting their restrictions and the surge in oil shot up, there were issues with oil shipping and supply gaps which have resorted with certain countries facing power shortages causing energy crisis, such as with China and Sri Lanka.

For the IEA Oil Market report, please visit their website.

More information on the oil shipping market:

Forecasting oil tanker shipping market in crisis periods

Energy Crisis 2021