Medium-range (MR) tanker supply in Europe may build in the coming weeks as high US gasoline inventories limit voyages to the US East Coast, says a shipping analyst for tanker brokerage Charles R Weber.
"The market for MRs in Europe could easily decline if gasoline cargoes slow," said researcher George Los.
Los cites record inventories of gasoline in storage along the central US Atlantic coast, the main storage hub.
The Energy Information Administration said yesterday that gasoline inventories there stood at 39.7 million barrels, the highest on record.
More gasoline is on the way. AIS data show seven laden tankers currently set for discharge in the New York Harbour region.
Building inventories and high ship supply have pushed down rates on the trans-Atlantic spot voyage. The Baltic Exchange last assessed the TC2 rate at $7,700 per day.
Los says rates faces further weakness due to the "reduction of demand" for gasoline cargoes.
He says charterers may exercising options to discharge at ports other than ones along the central Atlantic, but he says charterers are not likely diverting ships mid-voyage.
"I have not seen any diversions," Los said.
US Southeastern ports are among the options for MRs, but storage there is filling up as well. Gasoline stocks in the US Southeast sit at 28.9 million barrels, which is 2 million barrels shy of its highest levels.
