Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 54

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 4
Chunk 54
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 producers as the country exported crude to every major importer, including China, India, South Korea, and several European countries. Consequently, U. S. crude oil exports averaged 1.2 mbpd and 2.1 mbpd in 2017 and 2018 respectively, with increasing production encouraging greater loadings in the Gulf of Mexico.

Between 2017 and 2023, U. S. crude oil exports showed a significant upward trend, with a CAGR of 23.4%. Despite the COVID-19 pandemic and a steep decline in crude oil prices in 2020, exports remained strong, partly due to the China-U. S. phase one trade deal and rising demand from Europe. Exports increased drastically in the past two years on the back of higher demand for U. S. crude oil following sanctions on Russia, the U. S.'s release of oil from emergency reserves, and increased domestic production.

U. S. Crude Oil Production and U. S. Product Exports

*Source: JODI

Product Tanker Demand

Product tanker demand is influenced by several factors, including economic activity, global demand for refined products, arbitrage trading, and trade patterns. In addition, geopolitical events, such as conflicts and sanctions, as well as environmental regulations and the availability of transport alternatives, can significantly impact trade routes and demand.

World seaborne tanker trade volumes normalized in 2024 after surging in 2022 and 2023 as global oil demand moderated driven by a slowdown in the West and China. The slowdown in naphtha demand due to challenging economic conditions

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in China and low demand in Japan and Taiwan has weighed on the naphtha trade, while low diesel demand due to lackluster industrial activity subdued diesel trade. This was partially offset by increased jet fuel demand, which supported the product trade. Product trade grew 0.2% per annum in 2024, lower than the 3.1% increase in 2023. Despite the modest growth in seaborne trade, tonne-mile demand increased, primarily due to the re-routing of vessels via the Cape of Good Hope (COGH).

Global seaborne tanker trade grew 2.9% per annum in 2023 and 3.2% per annum in 2022, driven by robust oil demand and increased chemical trade. Oil demand benefited from the post-COVID-19 rebound in China’s oil consumption and a healthy growth in demand in developing countries of