West African VLCC Market Strengthens, Suezmax Market Was Quiet
In the previous part of this series, we saw how the BDTI (Baltic Dirty Tanker Index) changed in week 13, which ending March 31, 2017. In this part, we’ll take a look at crude oil (DBO) tanker rates. Let’s see which tankers performed the best in week 13.
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According to the Weber Weekly Tanker Report, the start of week 13 wasn’t impressive for the VLCC (very large crude carriers) market since the supply and demand imbalance was at a multiple week high. However, as the week progressed, VLCC rates bounced back as demand increased. The West African fixture tally rose to 11 fixtures, a 38.0% rise week-over-week and a ten-week high.
According to the same report, VLCC rates on the benchmark route rose to $13,871 per day on March 31, 2017, from $13,826 per day on March 24, 2017. The average rate for all VLCC routes rose to $18,315 per day from $18,178 per day for the same period. DHT Holdings (DHT) and Euronav (EURN) primarily operate VLCCs.
According to the Weber Weekly Tanker Report, the Suezmax market remained quiet in week 13 as charterers progressed into the April program. The West African Suezmax market fixture tally fell to a three-month low of five, a 58.0% fall week-over-week.
According to the same report, the Suezmax rate on the benchmark route fell from $16,025 per day on March 24, 2017, to $15,426 per day on March 31, 2017. The average rate for all Suezmax routes fell to $19,793 per day on March 31, 2017, from $20,656 per day in the prior week.
According to the Weber Weekly Tanker Report, Aframax rates on the Caribbean route fell to $3,369 per day on March 31, 2017, from $5,341 per day a week earlier. The average rate for all Aframax routes fell to $13,939 per day, from $14,950 per day for the same period.