After over a month of idleness, oil tankers are looking to busier days now that Iraq has decided to resume oil shipments.
Market sources believe that the waning market will see a quick recovery now that exports are expected to reach approximately 2.1 million barrels per day, reports Gulf News.
Since Iraq announced its plans to resume shipments, tanker demand has been up by 13 percent. Furthermore, 26 new tankers are due to be delivered this year in addition to 45 in 2002.
This worries some, however, who feel that supply and demand forces are such that the increasing number of tankers will lack sufficient freight.
Moreover, older tankers, which would have previously ceased to operate after a certain number of years, are currently remaining in operation due to their continued profitability. This in spite of international warnings that such tankers are at high risk of malfunctions possibly resulting in spillage. –(MENA Report)
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