The cost of shipping 80,000 tons of crude oil from Indonesia to Japan may increase on demand from power utilities.
The rate for so-called Aframax tankers sailing from Indonesia to Japan remained at Worldscale 147.5 for a tenth day, according to data compiled by Bloomberg. That pegs the cost of shipping a barrel of oil on the route at US$1.73.
Charters are hiring more ships to transport Duri crude from Indonesia to Japan, where utilities burn the oil in their power plants, ship broker Kats Nishikawa said. South Korean demand for the grade for refining into low-sulphur fuel oil has grown on power demand, PVM Oil Associates said in a report yesterday.
'The market is firming up some,' Mr Nishikawa, general manager with Tokyo-based ship broker Matsui & Co said in an interview on Tuesday. 'Especially for early June, you're seeing a lot of cargoes going from Indonesia to Japan and Korea.'
SK Corp, South Korea's biggest refiner, hired the KWK Esteem for June 4 to travel from Senipah port in Indonesia to Ulsan at Worldscale 148.5, said a report yesterday from brokers Seatown Shipbroking. GS Caltex Corp and Hyundai Oilbank hired Aframax tankers to sail from Dumai in Indonesia to South Korea at rates between Worldscale 149 and 150, said Seatown.
The rate for Aframax tankers to Singapore from Kuwait was unchanged at Worldscale 139.42, according to the London-based Baltic Exchange. The cost of shipping on the route has fallen 5.5 per cent since May 14.
Inventories of fuel oil in Singapore have surged to 15.2 million barrels, a six-month high, in the week ending May 16, according to government data. Imports of the product to Asia from the Middle East, called arbitrage shipments, have fallen as buyer demand has declined.
Worldscale points are a percentage of a nominal rate, or flat rate, for a specific route. Flat rates, quoted in US dollars a ton, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates.
Shipping cost of gasoline and other clean petroleum products to Asia gained, according to the Baltic Exchange. Shipping costs for 55,000 tons of products on the route to Japan from the Middle East rose to Worldscale 200 from 199.15, the highest in four months.
The rate to carry 75,000 tons of gasoline, naphtha or jet fuel from Singapore to Japan rose to Worldscale 139.17 from 138.13, the third straight day of gains, according to the Baltic Exchange. The cost to ship 30,000 tons of oil products from Singapore to Japan stayed at WS 256.25, unchanged from the day before.
The rate for so-called Aframax tankers sailing from Indonesia to Japan remained at Worldscale 147.5 for a tenth day, according to data compiled by Bloomberg. That pegs the cost of shipping a barrel of oil on the route at US$1.73.
Charters are hiring more ships to transport Duri crude from Indonesia to Japan, where utilities burn the oil in their power plants, ship broker Kats Nishikawa said. South Korean demand for the grade for refining into low-sulphur fuel oil has grown on power demand, PVM Oil Associates said in a report yesterday.
'The market is firming up some,' Mr Nishikawa, general manager with Tokyo-based ship broker Matsui & Co said in an interview on Tuesday. 'Especially for early June, you're seeing a lot of cargoes going from Indonesia to Japan and Korea.'
SK Corp, South Korea's biggest refiner, hired the KWK Esteem for June 4 to travel from Senipah port in Indonesia to Ulsan at Worldscale 148.5, said a report yesterday from brokers Seatown Shipbroking. GS Caltex Corp and Hyundai Oilbank hired Aframax tankers to sail from Dumai in Indonesia to South Korea at rates between Worldscale 149 and 150, said Seatown.
The rate for Aframax tankers to Singapore from Kuwait was unchanged at Worldscale 139.42, according to the London-based Baltic Exchange. The cost of shipping on the route has fallen 5.5 per cent since May 14.
Inventories of fuel oil in Singapore have surged to 15.2 million barrels, a six-month high, in the week ending May 16, according to government data. Imports of the product to Asia from the Middle East, called arbitrage shipments, have fallen as buyer demand has declined.
Worldscale points are a percentage of a nominal rate, or flat rate, for a specific route. Flat rates, quoted in US dollars a ton, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates.
Shipping cost of gasoline and other clean petroleum products to Asia gained, according to the Baltic Exchange. Shipping costs for 55,000 tons of products on the route to Japan from the Middle East rose to Worldscale 200 from 199.15, the highest in four months.
The rate to carry 75,000 tons of gasoline, naphtha or jet fuel from Singapore to Japan rose to Worldscale 139.17 from 138.13, the third straight day of gains, according to the Baltic Exchange. The cost to ship 30,000 tons of oil products from Singapore to Japan stayed at WS 256.25, unchanged from the day before.