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Storm Harvey to spur demand for Asia refined products

Staff Writer |
The devastating tropical storm in Texas is pushing up demand for loading gasoline and gasoil from Asia and is likely to support the overall freight rates, market participants said.

Cutting across the vessel sizes, there will be incremental demand for all types of ships - Long Range 1, Long Range 2 and Medium Range - as traders snap up ships to meet the European and American hunger for refined products, they said.

LR2, LR1 and MR tankers typically carry up to 90,000 mt, 65,000 mt and 40,000 mt of cargoes respectively.

Trading companies are keeping their options open to deliver jet fuel or gasoline cargoes into the US or South America and are already making changes to their fixtures, said a source with a clean oil tankers' owner.

"Lots of last week's fixtures are now being changed to have additional [destination] options such as Brazil and US West Coast," the source said. With port operations shut in the US Gulf Coast, it makes sense to deliver cargoes elsewhere in the Americas.

Tropical Storm Harvey made landfall last Friday in Texas and is resulting in the shutdown of refineries.

This will delay shipments of cargoes from the U.S .Gulf Coast, both for domestic requirement and exports. These requirements will now need to met from elsewhere.

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