Rates for dirty tankers on key Asian freight routes are expected to decline over the next week, pressured by a fall in Middle East crude cargoes and a lingering oversupply of vessels, ship brokers said, Reuters reports.
Rates on the benchmark very large crude carrier (VLCC) export route from the Middle East to Japan rose to W36.58 on Monday from W34.34 last week, supported by crude deliveries from longer-haul routes in the Atlantic basin. The market has struggled to recover since hitting this year's low of W33.58 on July 19. ''Despite small gains, the VLCC market remains mired in summer doldrums,'' said broker firm Charles R. Weber.
''A sharp drop off in the monthly Middle East cargo programs from July has created fresh near-term challenges for VLCC owners.''
Seaborne oil exports from OPEC, excluding Angola and Ecuador, were expected to fall by 90,000 barrels per day in the four weeks to Aug. 25, an analyst who estimates future shipments said last week.
The Baltic Exchange's rate for 260,000-tonne crude tankers from West Africa to China edged down to W36.73 from W36.75 last week. The market hit a 2012 low of W35.95 earlier this month.
Rates for 80,000-tonne aframax tankers from Southeast Asia to East Coast Australia rose to W86.93 from W86.69 last week.
In the clean tanker market, rates for long range (LR1) tankers on the benchmark TC5 Middle East to Japan route fell to W120.21 on Monday from W125.50 last week.
''TC5 sees a very slow start to the week, and rates are expected to remain below W120,'' said broker firm ICAP. ''It depends on dates, but we expect the next deal to be done in the W115-W117.5 range.''
In the intra-Asia market, medium range (MR) tankers travelling from Singapore to Japan eased to W121.69 from W121.94 last week.
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