China’s August Trade Data Impacted the Crude Tanker Industry
China released August data
China released key economic data for August 2017—export and import data, auto sales data, and the manufacturing index. The information is important for assessing the crude oil tanker industry’s outlook.
China, the second-largest economy in the world, is a key factor for the crude tanker industry. The country is the second-largest oil importer in the world behind the US. China imports most of its crude oil using crude tankers. China’s crude imports are more important for the crude tanker industry than US crude imports. If we see the trend in 2017, China’s oil production is falling. At the same time, its crude oil demand is increasing. If the trend continues, China’s imports should increase. China is the largest manufacturing hub in the world. The oil demand is closely related to manufacturing activities. Higher manufacturing activity translates into higher oil demand, while higher oil demand means higher tanker demand. Also, a country’s oil demand is closely related to its gasoline demand. The transportation industry drives the gasoline demand. In many ways, China is the most important country for the tanker industry. Companies in the industry include Teekay Tankers (TNK), Frontline (FRO), Tsakos Energy Navigation (TNP), DHT Holdings (DHT), Gener8 Maritime (GNRT), Nordic American Tankers (NAT), Navios Maritime Midstream Partners (NAP), and Euronav (EURN).
In this series, we’ll take a close look at China’s August 2017 import-export data—especially crude imports and the manufacturing sector’s performance. We’ll also take a look at how China’s auto industry performed in August.
In the next part of this series, we’ll take a closer look at China’s import-export data.