The Business Times

Oil-tanker recovery trails market with US export ban

Published Thu, Jan 9, 2014 · 10:00 PM
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[NEW YORK] The recovery propelling shipping markets is poised to leave crude-oil tankers behind, unless the US changes its 39-year-old ban on most unrefined exports.

Sea shipments of refined fuels are set to expand the fastest since 2010 and demand to transport dry-bulk commodities such as iron ore and coal will rise more than capacity for the first time in seven years, according to Clarkson plc, the world's largest shipbroker.

Demand for crude carriers will advance the least since 2009, as the US produces the most domestic supply in a quarter century and cuts imports for the fourth straight year, Clarkson estimates.

Profits will increase for companies including product-tanker owner Scorpio Tankers Inc and Star Bulk Carriers Corp, whose ships carry dry-bulk commodities, analyst estimates compiled by Bloomberg show. Allowing more US crude exports would be a "positive surprise" for tankers, according to RS Platou Markets AS. Senator Lisa Murkowski of Alaska backed lifting the export…

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