Tanker Trends

Friday, March 31, 2000
Rates Steady Despite Strong VLCC Demand

Strong demand for VLCC tankers in the Middle East failed to create a massive breakout in rates, but owners were happy as bunker fuel prices continued to fall, brokers said early last week.

Expectations that a lack of modern tonnage would hike rates for mid-April oil major-approved vessels failed to come true.

An Exxon cargo for Singapore lifting from three Mideast ports finally got done at the going rate of W77.5 (about $5.00 per ton) after early week offers of W100 had excited dreams W87.5 ($5.50) could be achieved.

Other eastern rates held ground or crept up with the average for Japan W77.5 ($8.50 per ton) and W75 ($7.00) for South Korea. Western prices also inched up to around W65 ($11.25 per ton) for the U.S. Gulf while Red Sea fixtures achieved W72.5-75.

Falling bunker prices - now around $25 a ton down on last week at $150 in Fujairah - meant owners returns improved though, brokers said.

Eyes were now turned towards the outcome of OPEC's meeting in Vienna on relaxing oil output restraints. Brokers forecast that increased exports would cause VLCC rates to climb in April.

One broker's analyst saw W82.5 ($9.00 per ton) to Japan before rates eased off again toward the summer to around W60-65 ($6.50-7.00).

However, another forecast the opposite - saying that demand for restocking would not come through until oil prices dropped. "VLCC rates may go to W80 for a fortnight before dropping back until the end of the second quarter when they will start pulling up again," he said. Summer holiday demand for aviation fuel and gasoline in the U.S. and Europe in the driving season plus a need to start restocking before winter would impact shipping rates in the third quarter, he said.

VLCC availability in April remains fairly tight, broker E.A. Gibson said in a weekly report. It saw 54 vessels of 15.25 million tons in the Middle East over the next month, including 26 modern VLCCs. - (Reuters)

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

Tanker Trends

HMAS Success Deploys to Middle East

After months of preparation, HMAS Success departed Garden Island in Sydney today for a six-month deployment to the Middle East Region to provide logistic support

Rosneft Ships First Oil From Chayvo Field

Rosneft commenced shipment of crude oil extracted at the Northern Tip of Chayvo license off the coast of Sakhalin, with the first tanker carrying Sokol-grade crude leaving port on November 21.

Venezuela Ships First Crude Mixed with Algerian Oil to China

Venezuela is sending its first shipment of crude mixed with Algerian light oil to China, according to state oil company PDVSA and traders.   Venezuela recently

 
 
Maritime Security Naval Architecture Navigation Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.1538 sec (7 req/sec)