Crude cargoes are set to drop this month as Opec members close in on their goal for oil output cuts, two cargo tracking firms say.
The data underscore comments from Euronav chief Paddy Rodgers who sees Opec cuts among the factors contributing to a "difficult rate environment for 2017."
Geneva-based Petro-Logistics estimates that Opec producers have cut output some 900,000 barrels per day for January. US-based firm ClipperData estimates Middle East waterborne exports dropped 1 million barrels for January.
Members of Opec, which will not release full production figures until next month, pledged some 1.2 million barrels per day in cuts. Non-Opec members have signed on for an additional 600,000 barrels per day in cuts.
The cuts comes as VLCC rates hit the lowest level in three months. The Baltic Exchange assessed Middle East to Asia spot voyages on VLCCs at just over $37,000 per day. Caribbean Basin-to-Asia voyages were assessed at $49,000 per day, said tanker brokerage MJLF.
