Wednesday, June 17, 2009
Tanker markets 'show signs of life'
Wednesday, 17 June 2009
US investment bank Dahlman Rose is optimistic that a recovery may be under-way for the tanker markets. “Tankers show signs of life”, said the New York-based financial services provider in a note to Tankerworld on Monday. According to Dahlman Rose, strong fixture volumes pushed MEG VLCC rates higher last week as spot rates for East-bound voyages moved up to over $35,000 per day per vessel even though West-bound routes stayed “weak” below $18,000 per day per vessel.
Dahlman Rose noted that most of last week's activity centred around end-June cargoes and expects this week to see more July cargoes, which would help put upward pressure on rates as tonnage availability thins.
Dahlman Rose also pointed out that the International Energy Agency (IEA) has upped its 2009 oil demand forecast by some 120,000 barrels per day (bpd).
With regards to OPEC production, the investment bank suggested output rose by more than 100,00 bpd in May after a 300,000 bpd increase already in April output.
Dahlman Rose added, however, that while increased oil flow can add a degree of support to the tanker market, low crack spreads “could remain an overhang”.
It said Far East crack spreads began to increase slightly toward the end of last week, up from a low of $6 per barrel (pb) to $9 pb.
In the past $20 pb was the typical level that support spot tanker rates, said Dahlman Rose.
Source: Tanker World
