Weekly Tanker Time Charter Estimates, June 14 2017
Just a few weeks after the announcement of OPEC regarding the extension of the oil production cuts, production in Libya, Nigeria and Iraq increased by roughly 336,000 bbl/day. Academics and analysts warned this morning that if OPEC do not manage to implement the additional cuts, we should expect to see crude prices could sink back to $30/bbl.
Following the increased levels of activity last week in the MEG & WAF, things have cooled down slightly, having as a result a moderate decline in rates on routes out of the region. In the period market, VLCC rates remained at about the same levels, $29,000/pdpr for 1 year t/c, while smaller Suezmax can achieve rates hovering just above 19,000/pdpr.