Iraqi Standoff Blamed For Low Mideast Gulf - U.S. VLCC Freight Rates

Wednesday, June 20, 2001
Freight for Very Large Crude Carriers (VLCCs) from the Mideast Gulf to the United States has fallen to below $1 per barrel for the first time in over two years.

Oslo brokers said on Wednesday that Exxon had fixed the VLCC Agios Nikolaos for a 269,000 ton cargo to the U.S.Gulf in the first week of July at W35 ($0.99 per barrel).

Eastbound rates have also followed suit, and fixture lists on Wednesday showed two fixtures at W38: the Napa and the New Vista.

The Napa fixture to Thailand in the first week of July represents $0.39 per barrel, while the New Vista fixture to the Far East represents $0.64 per barrel. Both equate to levels almost a quarter of what they were at the start of the year.

London brokers said on Tuesday that the slump was directly linked to the Iraqi-standoff and that there was little prospect of improvement this summer.

Iraq halted its 2.1 million barrels a day of U.N. supervised crude sales on June 4 in protest at Anglo-American plans for a revamp of Gulf War sanctions.

Million-barrel tankers have sustained further losses this week, undermined by the VLCC market. Two VLCC fixtures were concluded out of West Africa at W52.5 ($0.76 per barrel), a fall of over seven points on Friday's levels.

Cheap VLCCs started undercutting million-barrel ships back in April, dragging rates down from W125 ($1.65 per barrel) at the start of May to W82.5 ($1.09 per barrel) today.

The contagion has also spread to the Mediterranean, which is also highly dependent on Iraqi loadings.

Wednesday fixture lists show two million-barrel fixtures from the Black Sea to Europe, the Stemnitsa and the Iran Semnan, at W80 ($0.45 per barrel), indicating that about five points have been eroded from last Friday's W85 ($0.47 per barrel).

Smaller ships have also suffered, with 70-80,000-ton vessels charging W95 in the North Sea ($0.50 per barrel), W120 in the Med ($0.58 per barrel), W135 in Asia Pacific ($1.25 per barrel) and W160 in the Caribbean ($1.18 per barrel).

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

GTT Earns Five AIPs for Multi-gas Membranes

Gaztransport & Technigaz (GTT), designer of membrane containment systems for the maritime transportation and storage of LNG (Liquefied Natural Gas) announced five

Steel Cut for Yamal LNG Project’s Lead Tanker

A steel-cutting ceremony was held on September 29 for the lead gas tanker ordered by SCF Group for transportation of liquefied natural gas (LNG) under the Yamal LNG project.

GasLog Closes First Option Vessels Dropdown

GasLog Ltd.  announced today the closing of the sale of two modern liquefied natural gas (“LNG”) carriers, the Methane Jane Elizabeth and Methane Rita Andrea,

Finance

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

GasLog Closes First Option Vessels Dropdown

GasLog Ltd.  announced today the closing of the sale of two modern liquefied natural gas (“LNG”) carriers, the Methane Jane Elizabeth and Methane Rita Andrea,

Brent Holds Above $97, Eyes Worst Quarter Since 2012

Brent crude futures hovered above $97 a barrel on Tuesday, aided by firm U.S. and Chinese data, but the oil benchmark was on track for its deepest quarterly drop

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1805 sec (6 req/sec)