Weekly Tanker Time Charter Estimates, June 21 2017
Oil fell over 2% on Tuesday and traders seem to expect a bigger drop in the market. Additionally some of China’s top oil refineries are planning to reduce operations during the peak demand in the summer season when hot weather drives up power usage.
On the Shipping markets, MEG was still oversupplied this week with plenty of available vessels and limited activity.
This contributed to a fall in the LR2 rates on the Gulf-Japan route while LR1s trading on the same route managed to remain on the same rate levels. In the meanwhile, in the period market, rates sort of bubbling around for MRs and LR1s.
For 1 year t/c, modern MRs can achieve $13,500/pdpr while bigger LR1 rates are hovering around $13,350/pdpr.