Rates to ship crude oil from the Caribbean basin fell for a third day as refinery maintenance and repairs helped create a surplus of crude oil along the US Gulf Coast and mid-continent.
As of last week, supplies of crude oil were at 342.2 million barrels, 7.2 per cent higher than the five-year average for the period, according to a US Energy Department report on Friday.
Two Aframax tankers, which can each transport about 600,000 barrels of oil, were hired on Saturday to move crude from the Caribbean to the US at an average rate of Worldscale, or WS, 140, according to a daily report from Lone Star, R.S. Platou in Houston.
One ship was hired to move crude between Panama and the US Gulf Coast and another was hired to move crude from the east coast of Canada to the US Atlantic Coast.
Ship owners seek to move their vessels around the globe to take advantage of higher rates. With slow markets elsewhere, there is no incentive to take excess capacity out of the Caribbean.
WS 140 is equivalent to about US$19,846 per day after expenses such as fuel and port fees, according to New York-based-broker Poten & Partners. Saturday's rate was a 3.6 per cent decline from Friday.
General Maritime Corp, the third-largest US tanker owner, has a break-even rate of about US$12,000 a day. The New York-based company operates many of its vessels in the Caribbean.
Overseas Shipholding Group and OMI Corp are the largest US-based oil-tanker owners.
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.
As of last week, supplies of crude oil were at 342.2 million barrels, 7.2 per cent higher than the five-year average for the period, according to a US Energy Department report on Friday.
Two Aframax tankers, which can each transport about 600,000 barrels of oil, were hired on Saturday to move crude from the Caribbean to the US at an average rate of Worldscale, or WS, 140, according to a daily report from Lone Star, R.S. Platou in Houston.
One ship was hired to move crude between Panama and the US Gulf Coast and another was hired to move crude from the east coast of Canada to the US Atlantic Coast.
Ship owners seek to move their vessels around the globe to take advantage of higher rates. With slow markets elsewhere, there is no incentive to take excess capacity out of the Caribbean.
WS 140 is equivalent to about US$19,846 per day after expenses such as fuel and port fees, according to New York-based-broker Poten & Partners. Saturday's rate was a 3.6 per cent decline from Friday.
General Maritime Corp, the third-largest US tanker owner, has a break-even rate of about US$12,000 a day. The New York-based company operates many of its vessels in the Caribbean.
Overseas Shipholding Group and OMI Corp are the largest US-based oil-tanker owners.
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.