Commodities trader Vitol has fixed two modern VLCCs to ship more US crude into Nigeria as brokers talk up the boost to tanker markets.
The vessels will be carrying US WTI oil to the huge new Dangote refinery near Lagos next month.
Vitol is looking to charter the 300,000-dwt Marshall Islands-flag Water Tiger (built 2020), a former Hunter Group VLCC owned by Rami Ungar’s Ray Car Carriers.
A shipping source told told Reuters the lump sum is about $3.95m and the ship is due to head east between 13 and 15 May.
The Water Tiger is currently chartered to Trafigura for a year at $54,000 per day, VesselsValue data shows.
Vitol is also booking Adnoc Logistics & Services’ Liberia-flagged 299,400-dwt Hafeet (built 2023) between 15 and 20 May.
Both vessels are believed to be on subjects.
VLCC spot rates are approaching $40,000 per day, up 10% in the past seven days.
Vitol has not commented.
The new deals follow reports of a Greek VLCC being stuck off Nigeria for a month due to payment issues involving Dangote.
Shipping data from LSEG and Kpler showed Maran Tankers’ 300,000-dwt Maran Mira (built 2020), also a former Hunter Group VLCC, has been off the coast since 28 March with a crude cargo shipped by Chinese state energy company PetroChina.
Big demurrage costs
The vessel left the US with the oil on 5 March. It is reported to be racking up demurrage charges of $65,000 per day.
Trading sources told Reuters the completion of the sale of the 2m-barrel WTI cargo has been delayed because the refinery has not issued a letter of credit.
“The ramp-up of the Dangote refinery could be a net positive for crude tankers as the refinery is likely to take advantage of crude pricing dislocations and absorb more competitive WTI — on VLCCs — which is suitable to maximise gasoline yields,” shipbroker BRS Group said.
Suezmax demand will probably not be hit too much, as more expensive Nigerian barrels are shipped out for export, the company added.
Any VLCC congestion from payment delays could also be a “short-term positive”, it said.
