Dirty Tankers West of Suez Commentary.

Catogory : Market Report

Suezmax prices were soft in West Africa Wednesday and UK Continent VLCC rates dropped, sources said. The West Africa to UK Continent Suezmax route, basis 130,000 mt, was valued at Worldscale 87.5, w2.5 lower. “The tonnage list is balanced into the first decade in WAF but the Suezmax fuel oil arbitrage is closed east and so any ships on UK Continent will be looking at WAF stems which will cap any potential price rises.

The Rotterdam to Singapore VLCC fuel oil route, basis 270,000 mt, was assessed at a $3.3 million lump sum, down $200,000. “WAF and the Caribbean are looking soft, so it has to impact UK Continent rates,” a source said. The Hound Point terminal in the UK is likely to be closed for a few weeks, so there will be no crude loading on VLCCs out of the port, sources said. The cross-Mediterranean Aframax route, basis 80,000 mt, was assessed flat at w90. A lot of ships went on subjects on the day but not enough to move prices and the CPC and Novorossiisk terminals in the Black sea have re-opened as well, sources said. The Baltic to UK Continent route, basis 100,000 mt, was assessed flat at w72.5.

Mediterranean Handysize route, basis 30,000 mt, was valued at w192.5, w2.5 lower. “There is a lot of prompt Handysize tonnage around and not much cargo unfortunately. There are too many weak links in the market as well who will be open to lower offers.