VLCC Rates Collapse

Thursday, August 09, 2001
Rates for VLCCs collapsed by 15 percent overnight as shipowners scrambled to book voyages out of the Mideast Gulf before September 1 when OPEC cuts are expected to hit tanker demand. Exxonmobil fixed the Starlight Jewel for a 275,000-ton cargo to Singapore loading July 24 at W43.5 (about $0.42 per barrel), brokers said, compared to estimates of the route at W50 on Wednesday. They said W42.5 could be done by the end of Thursday, representing a drop of nearly nine cents per barrel in the space of 24 hours. "There were about nine shipowners falling over each other to get that fixture, and for Exxon it was like taking candy from a baby," said one London broker. "It's been a quiet week and people are just very scared of September, a lot comes down to sentiment," he added. OPEC agreed on July 25 to cut output for a third time this year from September 1 by a million barrels per day, or four percent, bringing its total 2001 cuts to 3.5 million bpd. Brokers said that rates on eastbound VLCC routes were unlikely to fall much below W42.5, because owners were holding out for westbound cargoes, which would take them out of the Mideast Gulf for the whole of September. They also said that owners of older turbine tankers would start holding out for stronger rates, because anything lower would be loss-making. Eastbound tanker rates climbed steadily throughout 2000 to hit a highpoint of over W195 in November ($3.30 per barrel on voyages to Japan). Rates crashed to an 18-month low of around W40 in mid-June on fears that the suspension of Iraqi exports would affect demand. Iraq, still under United Nations sanctions imposed after the 1991 Gulf War, suspended oil exports for the month of June to protest at a U.S./British plan to revise the sanctions terms but renewed deliveries once the plan was withdrawn. Since mid-June rates had been slowly recovering. - (Reuters)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Enterprise to Export First Ethane Cargo from Houston Terminal in August

Enterprise Products Partners on Thursday said the first ship to load ethane for export from its new terminal on the Houston Ship Channel will arrive on Aug. 1,

Concordia Maritime Posts Q2 Profit

Facing a “gradually deteriorating market,” Sweden based tanker shipping company Concordia Maritime said it was able to post a profit in Q2 2016 based on high vessel

Oil Spills from VLOC in Strait of Malacca

Berge Bulk Maritime confirms that an its VLOC (Very Large Ore Carrier)  “BERGE BUREYA” – (IMO/LR # 9297539) operated vessel was involved in an oil spill incident

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Sonar
rss | archive | history | articles | privacy | 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: 0.0645 sec (16 req/sec)