Saudi Fuel Exports Throw Lifeline to Tankers as Refining Surges - Bloomberg Business

Saudi Fuel Exports Throw Lifeline to Tankers as Refining Surges - Bloomberg Business:



"With Arab Gulf diesel exports poised to exceed imports for the first time, owners of fuel tankers are ordering more ships.



Overseas sales of refined products from the Gulf may rise 45 percent over the next decade, outpacing a 13 percent increase in crude exports. The region will become a net exporter of diesel next year, according to JBC Energy GmbH. Scorpio Tankers Inc. is adding 15 fuel tankers to its fleet while D’Amico International Shipping SA ordered two more to meet demand it expects from longer shipping routes to service the surge.



Seeking to extract more value from their resources by processing them, Saudi Arabia and other Gulf producers will add at least 1.4 million barrels a day of refining capacity over the next five years, according to BMI Research, a unit of the Fitch Group. After meeting domestic demand they will ship the more-lucrative fuels abroad, boosting product tankers whose average rates this year are the highest since 2011."



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