Medium-range (MR) tanker rates, which have rebounded from last year's levels, look set for further gains during the spring as US refiners prepare for more exports.
After their maintenance season ended in March, US refineries' activity rose to 94% last week, the highest in four weeks. The increased production brought refined US products to their highest levels in weeks.
Most of this gasoline and diesel will be consumed domestically, “but refiners seem ready for more exports, and therefore they are cranking out big volumes faster than we expected,” said Seaport Global Securities in a report.
