Reuters: LR Clean Tanker Rates Steady, Naphtha Demand Helps

“Tanker rates for refined petroleum products on top export routes were steady on Monday, with firmer Asian naphtha demand in recent days helping to support the smaller segment of the long range market. . . . Brokerage Poten & Partners said the LR1 sector had suffered from brisk fleet growth, rising by 7.9 percent during 2011, slowing Asian industrial production growth limiting petrochemical naphtha demand and not enough arbitrage opportunities. ‘Although the naphtha trades have been critical to LR demand, other regional product imbalances, particularly in mid-distillates, could drive LR1 demand during the next several years,’ it added.”