Lloyd’s List: Fall in Middle East VLCC Supply will Support New Rate Growth

“A two-week turnaround in the very large crude carrier market has seen time charter equivalent earnings on the Baltic Exchange’s TD3 Saudi Arabia to Japan benchmark route climb from minus $2,000 per day in early November to over $20,000, leading analysts to predict that rates could double in the next month. Analysts from Norwegian investment bank DNB Markets are forecasting that April’s spike in VLCC rates could be repeated as the vessel count of available tankers in the Middle East has fallen significantly over the last week. Citing eastbound daily VLCC rates from Poten & Partners of $25,500 yesterday, up from $5,000 a week ago, the DNB analysts argue that the current upswing in rates could last for two to four weeks before owners and operators pick up sailing speed and the supply becomes more balanced.”