China booked a record high 48 Middle East supertankers, capable of carrying a total of 96 million barrels of crude oil, in the spot market in September as refiners raised their throughput volume, traders said yesterday, Reuters reports. The world's second largest oil user fixed eight more Middle East very large crude carriers (VLCCs) than in August, according to Tokyo-based broker firm Meiwa International.
A Reuters poll last month showed leading Chinese refiners would raise their crude oil throughput in September to the highest level this year, after PetroChina restarted a major crude unit at its largest Dalian refinery.
China also booked seven VLCCs from West Africa, bringing its total shipments in September to 55 supertankers - the highest number this year.
Asian refiners are turning more towards the spot market than long-term contracts with shipowners to take advantage of depressed freight rates, which have tumbled to record lows.
'VLCC freight rates are once again on a downhill fall, despite the ample fixtures reported, especially in the Middle East,' said George Dermatis, analyst at Athens-based Intermodal Shipbrokers.
Crude oil tanker earnings on the benchmark Middle East to Japan VLCC route have stayed in negative territory for most of the past two months, trading at -US$5,746 a day on Tuesday. In other words, shipowners are paying US$5,746 more a day in bunker fuel and other variable voyage costs than they received from companies using their VLCCs to ship crude oil from the Middle East.
A Reuters poll last month showed leading Chinese refiners would raise their crude oil throughput in September to the highest level this year, after PetroChina restarted a major crude unit at its largest Dalian refinery.
China also booked seven VLCCs from West Africa, bringing its total shipments in September to 55 supertankers - the highest number this year.
Asian refiners are turning more towards the spot market than long-term contracts with shipowners to take advantage of depressed freight rates, which have tumbled to record lows.
'VLCC freight rates are once again on a downhill fall, despite the ample fixtures reported, especially in the Middle East,' said George Dermatis, analyst at Athens-based Intermodal Shipbrokers.
Crude oil tanker earnings on the benchmark Middle East to Japan VLCC route have stayed in negative territory for most of the past two months, trading at -US$5,746 a day on Tuesday. In other words, shipowners are paying US$5,746 more a day in bunker fuel and other variable voyage costs than they received from companies using their VLCCs to ship crude oil from the Middle East.