The crude oil tanker market has shown varied performance across different vessel classes, with VLCC rates remaining resilient, while Suezmax and Aframax segments are experiencing their own distinct dynamics. Overall, increased oil output and changing global trade patterns are influencing charter rates and tonnage availability.
VLCC Market
VLCC (Very Large Crude Carrier) rates have held up well recently, despite the typically slow summer season. This strength is attributed to increased output from OPEC+ and a favorable West-East arbitrage, which has boosted owner confidence. Rates for the Middle East Gulf (MEG) to East routes have hovered between WS 50 and WS 60. As the regular early-month cargo program for September begins, there is potential for these rates to climb into the WS 60s. Additionally, growing oil exports from the U.S. Gulf (USG) and Brazil are helping to balance tonnage availability globally and support demand.
Suezmax Market
The Suezmax market has recently been very active, with firming rates in regions like Guyana, the Caspian Pipeline Consortium (CPC), and West Africa. Owners are feeling confident, and despite several vessels becoming available over the weekend, charterers are under pressure to cover their cargoes quickly as the September window is rapidly approaching. In the East, activity has been strong, and vessel supply remains tight, with many vessels opting to head to the Caribbean Offshore Gas Hub (COGH), further tightening the market.
Aframax Market
North Sea: Aframax rates in the North Sea are firming up. With some vessels moving to ballast and steady activity, charterers are finding it difficult to secure ships for dates before the end of August. Stem dates are pushing towards the month-end as charterers try to cover their needs before the long weekend. Owners’ sentiment is becoming firmer as the summer period concludes and activity is expected to pick up in the autumn, though the potential for larger vessels to take on some oframax business remains a factor.
Mediterranean: The Mediterranean Aframax market has been relatively quiet this week, causing some pressure on rates. The TD19 route has seen a drop to WS 140. With vessel positions firming up and dates moving into September, the market tone appears to be steady to softer, even though some of the available vessels may not be suitable for all traders.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: Fearnleys
