Data from the Indian government suggests the nation is cutting shipments from the Middle East in favour of cheaper oil from South America and Africa.
Shipments from Africa to India were up 12% in the year to March, while imports from South America have risen by 3%. At the same time, imports from the Middle East retreated by 6%.
“A shift from Middle Eastern crude grades to other sources should add to tanker demand, as average sailing distances would increase,” Arctic analyst Erik Nikolai Stavseth said in a report today.
He tells TradeWinds the trend in Latin American shipments is a positive for suezmaxes, while the West African upturn is also a bonus for VLCC owners.
Data from Howe Robinson Partners suggests VLCCs were earning $77,903 daily at the end of the European day Monday when adjusted for slow steaming.
Suezmax rates were at $60,824 per day, the broker said.
