Increasing ship scarcity has continued to boost VLCC spot rates, with earnings hitting their highest levels since June 2023.
Clarksons Research said the biggest crude tankers had enjoyed “a strong week”, with average rates up 54% in seven days at $76,728 per day, due to higher activity in the Middle East.
The Baltic Exchange assessed Middle East Gulf to China spot rates at $74,800 per day on Friday, up 74% in a week.
Tankers International reported the Angelicoussis-owned, 319,000-dwt Maran Artemis (built 2016) fixed to the US west coast on subjects by Chevron at a time charter equivalent rate of $79,711 for 79 days.
The vessel has a TCE breakeven of nearly $37,000, the pools company added.
The rate is strongly up from the previous fixture of Frontline's 300,000-dwt Front Orkla (built 2023) to Singapore by CNR at $60,779 over 43 days.
Clarksons Securities noted that product, crude and chemical tanker company stocks rose by about 4% on average last week.
Frontline gained 9% as spot rates surged on the back of crude import demand rising in Asia.
“The crude tanker sector is increasingly benefiting from limited vessel availability, as more ships navigate around Africa,” analysts led by Frode Morkedal said.
His team pegged rates for modern vessels at $83,000 per day, with scrubber-fitted ships at $90,000.
Crude production rebounding
Suezmax and aframax tankers saw more modest gains to about $50,000 per day.
Clarksons Securities described January as “challenging”, after global oil production declined by 1.4m barrels per day.
There were significant reductions of 0.9m bpd from the US and Canada, and 0.36m bpd from the Opec+ group, hitting cargo volumes.
But the analysts now note output is on the up in North America, after the end of severe winter weather that had previously hindered oil operations.
They are tipping global oil production to jump by 2m bpd up to the third quarter of this year.
“This increase is expected as production stabilises in North America during the second quarter of 2024 and as Opec scales back on production cuts entering the third quarter,” the investment bank said.
“With extremely few new vessel deliveries expected in the foreseeable future, we believe the crude tanker market could remain exceptionally tight,” the company added.
