Weekly Tanker Time Charter Estimates, August 16 2017
US crude inventories fell by 9.2Mbbls last week, almost 3 times more than analysts expected. OPEC members and Russia are still struggling to reduce the global supply surplus in the face of growth in output in other areas.
On the demand side, analysts expect a gradual slowdown in fuel consumption growth while in US gasoline demand has probably already reached the highest levels, due to the continuously improving fuel efficiency and also the rise of electric vehicles. On the shipping side, VLCC spot rates reached bottom during last week while for 1 and 2 years t/c rates are hovering just above $27,000 and $28,000/pdpr respectively.
MR2’s fixed for 1 year period can achieve $13,000/pdpr.