The International Energy Agency (IEA) expects the global oil tanker industry to face near-term headwinds. It expects 2.5 million b/d of Russian crude and product exports to vanish from the market beginning this month. “The prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock,” the report noted.
The industry is expected to resume high activity and longer average distances once the sector manages to reorganize its trade routes due to the current geopolitical unrest in Ukraine. However, it might take some time before greater clarity is achieved. According to the S&P Global report, the market needs to replace approximately 2.6 million b/d of Russian exports, which have been displaced mostly by boycotts in response to Russia’s Ukraine invasion.
