Asian spot freight rates for crude tankers loading from the Middle East were steady yesterday, but some brokers were poised for gains if a cyclone disrupts voyages in the Strait of Hormuz.
Rates for very large crude carriers (VLCCs) moving from the Middle East to Japan were pegged at W70 levels, down 10 points from the previous week, and about five points below Tuesday's Baltic Exchange settlement.
A total of four fresh inquiries were seen on the market with Reliance, Exxon Mobil and a Thai refiner seeking tonnage to move light sweet crude.
Saudi Arabia's state-run shipping unit Vela was looking for tonnage to move crude to the US.
'It's been a bit thin on the inquiries, but I imagine that as soon as the refineries in Asia come back onstream, we should start seeing more bookings,' a Singapore based shipbroker said.
Asia-Pacific oil refiners were expected to have taken 1.15 million barrels per day (bpd) of crude capacity offline this quarter, or about 4.7 per cent of their total, more than last year, Reuters data based on known maintenance shows.
The market was also closely watching the developments of Tropical Cyclone Gonu passing over the Gulf of Oman.
The storm, which earlier peaked as a maximum-force Category Five hurricane, was downgraded to a Category One hurricane, with a maximum sustained wind speed of about 92 mph earlier in the day, the US military's Joint Typhoon Warning Center said. The centre of the storm is now expected to hit land in south-eastern Iran over the next 36 hours but forecasters said it may lose considerable power by then.
But port officials at the main Omani crude export terminal said that port operations remained suspended, and vessels were asked to move out into the anchorage, as the high speed winds were carrying a lot of hazardous debris.
They also said that passing through the Strait of Hormuz was very risky and would advise against it, but added that ships continued to move through.
Aframax tanker rates for vessels plying between Singapore and China's southern fuel oil port of Huangpu were seen valued at around US$600,000, about 3 per cent lower than a week ago.
'We do see some demand, people making inquiries, but nothing firm as of yet. With rates coming off, the possibility is there, however,' a shipbroker said.
Rates for very large crude carriers (VLCCs) moving from the Middle East to Japan were pegged at W70 levels, down 10 points from the previous week, and about five points below Tuesday's Baltic Exchange settlement.
A total of four fresh inquiries were seen on the market with Reliance, Exxon Mobil and a Thai refiner seeking tonnage to move light sweet crude.
Saudi Arabia's state-run shipping unit Vela was looking for tonnage to move crude to the US.
'It's been a bit thin on the inquiries, but I imagine that as soon as the refineries in Asia come back onstream, we should start seeing more bookings,' a Singapore based shipbroker said.
Asia-Pacific oil refiners were expected to have taken 1.15 million barrels per day (bpd) of crude capacity offline this quarter, or about 4.7 per cent of their total, more than last year, Reuters data based on known maintenance shows.
The market was also closely watching the developments of Tropical Cyclone Gonu passing over the Gulf of Oman.
The storm, which earlier peaked as a maximum-force Category Five hurricane, was downgraded to a Category One hurricane, with a maximum sustained wind speed of about 92 mph earlier in the day, the US military's Joint Typhoon Warning Center said. The centre of the storm is now expected to hit land in south-eastern Iran over the next 36 hours but forecasters said it may lose considerable power by then.
But port officials at the main Omani crude export terminal said that port operations remained suspended, and vessels were asked to move out into the anchorage, as the high speed winds were carrying a lot of hazardous debris.
They also said that passing through the Strait of Hormuz was very risky and would advise against it, but added that ships continued to move through.
Aframax tanker rates for vessels plying between Singapore and China's southern fuel oil port of Huangpu were seen valued at around US$600,000, about 3 per cent lower than a week ago.
'We do see some demand, people making inquiries, but nothing firm as of yet. With rates coming off, the possibility is there, however,' a shipbroker said.