Rise in West African Crude Exports Lift Suezmax Rates in Week 27
According to Weber’s report for week 27, VLCC (very large crude carrier) rates hovered in the same range as the previous month. Compared to the previous week, VLCC rates have increased slightly due to strong demand. In the Middle Eastern market, the fixture tally rose to 29, which was 53.0% higher than the previous week. In the West African market, the fixture tally rose by two to eight.
Interested in NAT? Don't miss the next report.
Receive e-mail alerts for new research on NAT
According to the same report, VLCC rates for the Arabian Gulf to China route rose to $20,521 per day on July 7, 2017, from $19,219 per day on June 30. The average rate for all VLCC routes rose to $22,770 per day on July 7 from $20,990 on June 30. Euronav (EURN) and DHT Holdings (DHT) mainly operate VLCCs.
According to the Weber report for week 27, the elevated crude oil exports from West Africa lifted up the Suezmax rates. Seventeen Suezmax fixtures were reported in week 22, which was 13.0% higher week-over-week. The moving four-week average has risen to its highest since 1Q16. The Weber report said it sees a limited upside potential for Suezmax rates as crude oil exports from Russia continue to decline.
According to the report, Suezmax rates on the route from West Africa to the United Kingdom rose to $7,258 per day on July 7, 2017, from $5,112 per day on June 30. The average rate for all Suezmax routes rose to $8,714 per day on July 7, 2017, from $6,359 per day on June 30, which was a 37.0% rise week-over-week. Teekay Tankers (TNK) and Tsakos Energy Navigation (TNP) have Suezmax vessels in their fleets. Nordic American Tankers (NAT) operates only Suezmax vessels.
According to Weber’s report for week 27, Aframax rates on the Caribbean route reached fresh year-to-date lows as demand declined for the fourth consecutive week and supply remained high. Rates on the Caribbean route fell to $1,882 per day on July 7 compared to $3,209 per day a week ago. The average rate for all Aframax routes fell to $4,889 per day on July 7, 2017, from $5,586 per day a week ago.