VLCC spot rates on most routes softened slightly last week as charterers held back on the January programme on expectations of ample tonnage.
Most brokers were reporting MEG-East and MEG-West voyages around WS 80 and WS 50 respectively, down one or two points from the previous week.
According to Gibson, charterers were waiting to secure final confirmations from suppliers and “once received, availability looked plentiful enough to still keep the majority [of charterers] from showing interest.”
“Rates have, however, so far towed a steady line, though look a little under threat in the short term.”
Bassøe echoed that sentiment, saying last Friday that owners “have remained remarkably calm and avoided a case of pre-Christmas nerves”, despite being “hit by another bearish OPEC announcement of lower oil exports from January.”
“Benchmark rates are thus only marginally lower from last week.”
Owners and brokers alike are worried by OPEC's latest agreements to cut production by 2.2 million barrels per day (bpd) from January 1.
One Singapore-based broker told Tankerworld that this upcoming reduction in oil exports could be the “catalyst for a major slump in crude tanker freight rates.”
“A 2.2 million bpd cut effectively renders one VLCC worth of tonnage idle everyday. If OPEC adheres to the cut strictly by January 1, that could shock the market through significant over-supply of tankers.”