Tanker Market To Hit Record-Breaking Lows

Tuesday, June 19, 2001
The tanker market is fast approaching record lows, with little prospect of recovery this summer, brokers said on Tuesday.

"It's back to the bad old days," said one London broker. "The market's gone down the pan." He blamed the stand-off between Iraq and the United Nations for the stagnation.

He said that the 280,000-ton Napa had been fixed from the Mideast Gulf to Thailand in the first week of July at W38, while two others had been fixed to Singapore at W40.

He said that not since the market hit W30 several years ago had he seen it so bad. "I don't see any relief this summer," he added.

Even if OPEC were to agree to increase output at its next meeting on July 3 to account for the Iraqi stand-off, brokers said, it would take a while to impact on the tanker market.

"Most of the fixtures for July would have been done by then," said one.

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.

But a key European diplomat said last week that if there were no agreement on the sanctions review by the end of the extension on July 3, Washington would likely endorse a no-changes six-month rollover of the humanitarian program.

Iraq has said it would resume shipments, some five percent of world exports, if the oil-for-food programme were renewed as normal.

OPEC delegates said on Monday the likelihood of a supply boost in July would be reduced if Iraq restarted its normal oil sales.

However, tanker brokers said the only silver lining to the cloud was that the slump would encourage owners of older tankers to have them scrapped, thus restoring the supply demand balance.

"Bunker prices are pretty high now, and you have to ask whether the older turbine tankers can be covering their operating costs," said one. "It has to be borderline."

He said that with a large number of new VLCCs due for delivery in the fourth quarter a huge amount of scrapping was essential to resuscitate the market before then.

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

Oil Plunge Deepens High-yield Gloom

US crude fell to a more than six-year low this week, clouding the picture for a high-yield energy sector that already faces a significant cull when credit lines are reevaluated in autumn.

Oil Soars in Biggest One-day Rally in Years

Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.3279 sec (3 req/sec)