US-based oil majors have fixed several crude tankers on long-term contracts in an otherwise listless period charter market.
Brokers said Chevron recently chartered Sentek Marine & Trading’s two suezmax newbuildings for three years at $29,000 per day.
In 2019, the Singaporean bunker and shipping firm ordered the scrubber-fitted pair from New Times Shipbuilding for less than $56m each.
The vessels are due to be delivered from the Chinese yard in the fourth quarter.
Chevron was believed to be paying an above-market rate. Clarksons Research estimates the prevailing three-year rate for a scrubber-fitted eco suezmax at $26,500 per day.
Also, ExxonMobil reportedly secured the 114,000-dwt aframax Sea Turtle (built 2021) from Pantheon Tankers Management for three years at an unknown rate.
This is one of the three aframaxes Pantheon will receive from China’s Shanghai Waigaoqiao Shipbuilding in 2021.
Chevron declined to comment on the fixture. TradeWinds has approached Sentek, ExxonMobil and Pantheon for comment.
The reported deals came as most analysts believe tanker rates will gradually recover in the coming quarters due to a small orderbook and recovering seaborne oil trade.
“Several data points indicate that the timing of a recovery is nearing,” investment bank Evercore ISI’s analyst Jonathan Chappell said in a recent client note.
“Ongoing global oil demand growth, supply responses by Opec+ and non-Opec, inventory draws to below five-year averages, and a spike in scrapping are likely to all combine to lead to an imminent recovery in tanker rates by late this year and through 2022.”
Claire Grierson, tanker research head of Simpson Spence Young, said rising Opec+ output will bring “much needed cargoes” for tanker owners.
“Focus will also be on any nuclear deal that is agreed with Iran that raises their oil exports,” Grierson said in the brokerage’s mid-year outlook.
“While Iran’s production rise is likely to be gradual, it has a significant volume of oil and condensates in storage that could be delivered immediately in Asia, utilising its own ships or older tonnage operating on these trades, which again could impact on near-term spot crude tanker trade.”
Others have expressed worries over demand prospects amid renewed Covid-19 outbreaks in many parts of Asia.
“The belief that we could see significant rate increases in the fourth quarter could well be dashed yet by further coronavirus restrictions in several countries,” Braemar ACM Shipbroking said in a note. “Any further demand destruction with potential lockdowns will only serve to delay an increase in spot and period rates.”
