Tankerworld's list of recent fixtures on Tuesday showed that Hyundai fixed the single-hulled Astro Luna to move 260,000 tonnes of MEG crude for loading on December 6 at WS 47.
PTT fixed the double-hulled Andromeda to move 266,500 tonnes of MEG crude to a South East Asian terminal for loading on December 10 at WS 70.
“I just can't understand why charterers keep paying WS 70 east, it must be the Christmas mood. Volume is down and owners are nervous,” one broker was quoted saying.
For voyages west of the MEG, KPC fixed the Marina M to move 280,000 tonnes of crude to the US Gulf for loading on December 10 at WS 50.
A similar spot rate was negotiated for Koch's fixture of the Dubai Titan to move 280,000 tonnes of MEG crude to the US Gulf for loading on December 8.
Several brokers Tankerworld spoke to said that OPEC production cuts and slower oil demand growth in most economies were starting to cause VLCC tonnage supply to outstrip spot demand.
One Singapore-based broker said that some refiners had implemented cuts in their crude oil purchasing, “probably because oil prices are very low and not lucrative currently, while demand for refined products has also dipped.”
Tankerworld reported one such example early this month of plans by the China Petroleum and Chemical Corporation (Sinopec) to import less crude oil for some of its refineries amid signs Asian oil demand growth is slowing.
According to its parent company – the China Petrochemical Corp, Sinopec will be processing less crude oil at refineries with "relatively low profitability", but will maintain processing rates at facilities that are making "strong profits", Bloomberg reported.
Sinopec itself recently forecast that Chinese fuel and petrochemical demand growth will ease next year on a global economic downturn.
Analysts say that more than ample tonnage supply in the market currently can be blamed on a previous rush to build new vessels at a 'boom' time in the industry when vessel availability struggled to keep up with demand.
Now brokers are worried that current economic turmoil will persist and further pull down oil demand with it.
For the short term however, reports of an increasing number of VLCCs being fixed for storage and of action by leading operators to avoid the Gulf of Aden in favour of a much longer route further away from the Somali coast are providing hope of a rebound for spot rates.
Brokers however caution that “it remains to be seen” what the ramifications are, as diversions would mostly affect smaller tankers which can transit the Suez Canal, while the impact of storage is dependent on how many VLCCs are kept away.