From Bloomberg via gCaptain:
A fleet of giant newly built oil tankers is gearing up to ship diesel out of East Asia.
Five very large crude carriers, which typically carry about 2 million barrels of oil each, are currently positioned in the seas off China’s eastern and southern coasts, according to shipping intelligence and tracking company Kpler. Two more newbuilds are set to swell that fleet shortly. If all were fully loaded, they would haul a total approaching what is currently held in independent storage in Europe’s key trading hub of the Amsterdam, Rotterdam and Antwerp ports.
China is boosting output, with more refinery capacity coming online, while weak local demand for middle distillates is helping to push products west, said Jakob. The start of refinery maintenance season in Europe also stoking Western demand for the fuel. China’s first round of export quotas also signaled an increase in diesel exports at the start of the year, while independent gasoil/diesel stocks in ARA are at their lowest seasonally since 2014.
Three of the seven VLCCs highlighted by Kpler — the San Ramon Voyager, Ascona and Olympic Laurel — have already taken on board a combined 3.5 million barrels of diesel, according to a Bloomberg calculation from Kpler data, but are not yet fully loaded. Of the remaining four, one is currently loading, one is en route to Singapore where it may take on product, and two have yet to fully leave their construction yards....MORE
