Rates for Asian tankers to stay near 2011 lows on supply glut
Rates for crude tankers on key Asian freight routes are expected to remain near this year's lows over the next week as a ship supply glut overshadows strong demand for Middle East crude, Reuters reports. For clean tankers, rates are seen rising on a revival in trading activity following Asian holidays and last week's industry conference in Singapore, shipbrokers said on Tuesday.
Rates on the benchmark Very Large Crude Carrier (VLCC) export route from the Middle East to Japan eased to a near eight-month low of W45.12 on Monday from W46.11 last week.
'The Middle East Gulf VLCC market saw plenty of activity last week with the September fixture count making steady progress towards the monthly highs seen earlier in the year,'said shipbroker SSY.
'Nevertheless, a persistent profusion of tonnage continues to dominate the market, preventing any rise in rates.'
Traders have booked 102 September Middle East cargoes, leaving around 25 cargoes uncovered with 45 vessels still available, according to broker firm Charles R. Weber.
The Baltic Exchange's rate for 260,000-tonne crude tankers from West Africa to China fell to an 11-month low of W42.37 from W42.50 last week.
China has remained a strong crude oil buyer, importing 21.04 million tonnes in August, up 1.8 percent from the previous month.
'It is evident that China will have to ramp up imports significantly to make an impact on freight rates,' said Erik Nikolai Stavseth, analyst at Arctic Securities.
Rates for 80,000-tonne aframax tankers from Southeast Asia to East Coast Australia dropped to W92.83 from W94.67 last week. The market hit a seven-month low of W92.17 last Thursday.
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Clean rates for Long Range (LR1) tankers on the benchmark TC5 Middle East to Japan route fell to a one-month low of W140.19 on Monday from W146.35 last week, pressured by light trading activity.
The Asian naphtha market is expected to be slightly soft this week as South Korean buyers are away due to holidays. Many traders had also just left Singapore late last week following an annual industry event.
Fundamentals have not dramatically changed, with supplies still seen as relatively tight for October deliveries.
'With holidays in the Far East, the market remained quiet. We expect to see business resume some level of activity (on Tuesday) and into the week,' said broker ICAP.
In the intra-Asia market, medium range (MR) tankers travelling from Singapore to Japan dropped to a six-week low of W154.21 from W156.21.
The Baltic Exchange's rate for South Korea to North America's West Coast eased to US$31.57 a tonne from US$31.88 last week.
Rates on the benchmark Very Large Crude Carrier (VLCC) export route from the Middle East to Japan eased to a near eight-month low of W45.12 on Monday from W46.11 last week.
'The Middle East Gulf VLCC market saw plenty of activity last week with the September fixture count making steady progress towards the monthly highs seen earlier in the year,'said shipbroker SSY.
'Nevertheless, a persistent profusion of tonnage continues to dominate the market, preventing any rise in rates.'
Traders have booked 102 September Middle East cargoes, leaving around 25 cargoes uncovered with 45 vessels still available, according to broker firm Charles R. Weber.
The Baltic Exchange's rate for 260,000-tonne crude tankers from West Africa to China fell to an 11-month low of W42.37 from W42.50 last week.
China has remained a strong crude oil buyer, importing 21.04 million tonnes in August, up 1.8 percent from the previous month.
'It is evident that China will have to ramp up imports significantly to make an impact on freight rates,' said Erik Nikolai Stavseth, analyst at Arctic Securities.
Rates for 80,000-tonne aframax tankers from Southeast Asia to East Coast Australia dropped to W92.83 from W94.67 last week. The market hit a seven-month low of W92.17 last Thursday.
Products
Clean rates for Long Range (LR1) tankers on the benchmark TC5 Middle East to Japan route fell to a one-month low of W140.19 on Monday from W146.35 last week, pressured by light trading activity.
The Asian naphtha market is expected to be slightly soft this week as South Korean buyers are away due to holidays. Many traders had also just left Singapore late last week following an annual industry event.
Fundamentals have not dramatically changed, with supplies still seen as relatively tight for October deliveries.
'With holidays in the Far East, the market remained quiet. We expect to see business resume some level of activity (on Tuesday) and into the week,' said broker ICAP.
In the intra-Asia market, medium range (MR) tankers travelling from Singapore to Japan dropped to a six-week low of W154.21 from W156.21.
The Baltic Exchange's rate for South Korea to North America's West Coast eased to US$31.57 a tonne from US$31.88 last week.