There is a lot of discussion about the TMX pipeline expansion and its future effect on oil tanker trade dynamics. Therefore I thought it would be helpful to provide some visual context.
As one broker put it: “The Trans-Mountain Pipeline is expected to introduce significant upward potential for Aframax/Panamax demand in the Americas market.”
First of all, let me illustrate why the TMX pipeline expansion is considered so bullish for Aframax demand. Below is a map of the region, with all Aframaxes visible: