The world's benchmark super crude oil tanker rates from the Gulf to Japan have fallen to seven- month lows this week due to ample availability of vessels, traders said on Friday.
Baltic Exchange data shows freight rates for very large crude carriers (VLCCs) in the export route from the Gulf to Japan fell to Worldscale 151 late on Thursday, dropping by 29.50 points from the day before.
That was the lowest level since early June and the biggest one-day drop since early January for the two million barrel vessels on the route, according to Reuters data.
'I heard lots of tankers are on return voyage and the availability is quite high in the Gulf,' a crude oil trader said.
Another said the benchmark rates responded to reduced demand for vessels to carry fuel oil as improved fuel oil's crack in Europe and elsewhere tightened export flows to Asia.
'Nigeria has a really bad reputation for loading delays.' Vessels carrying crude oil and fuel oil are dubbed dirty tankers regardless of their sizes. Dirty tanker rates for other voyages mostly fell.
On the other hand, rates for clean tankers to carry oil products rose for the voyage from Europe as the trans- Atlantic export window to ship petrol widened after a drop in US motor fuel inventories, traders said. 'The arbitrage to the states is slightly open,' a petrol trader said.
Rates for clean tankers from Northwest Europe to the US Atlantic coast jumped to W262 after hitting a three- month low of W222 earlier this week.
Baltic Exchange data shows freight rates for very large crude carriers (VLCCs) in the export route from the Gulf to Japan fell to Worldscale 151 late on Thursday, dropping by 29.50 points from the day before.
That was the lowest level since early June and the biggest one-day drop since early January for the two million barrel vessels on the route, according to Reuters data.
'I heard lots of tankers are on return voyage and the availability is quite high in the Gulf,' a crude oil trader said.
Another said the benchmark rates responded to reduced demand for vessels to carry fuel oil as improved fuel oil's crack in Europe and elsewhere tightened export flows to Asia.
'Nigeria has a really bad reputation for loading delays.' Vessels carrying crude oil and fuel oil are dubbed dirty tankers regardless of their sizes. Dirty tanker rates for other voyages mostly fell.
On the other hand, rates for clean tankers to carry oil products rose for the voyage from Europe as the trans- Atlantic export window to ship petrol widened after a drop in US motor fuel inventories, traders said. 'The arbitrage to the states is slightly open,' a petrol trader said.
Rates for clean tankers from Northwest Europe to the US Atlantic coast jumped to W262 after hitting a three- month low of W222 earlier this week.