Ship glut hurts oil tanker earnings


Published — Tuesday 8 January 2013

Last update 8 January 2013 2:41 am

| نسخة PDF Print News | A A

Crude oil tanker earnings on the major Middle East route were steady yesterday although a surplus of vessel availability was capping rates.
The world's benchmark VLCC export TD3 route from the Middle East Gulf to Japan reached W43.20 in the worldscale measure of freight rates, or $ 15,592 a day when translated into average earnings.
That compared with W43.08 or $16,023 a day on Friday and W42.83 or $ 16,136 a day last Thursday. The Baltic did not publish comparable data last Monday due to the holiday season.
According to Reuters, Brokers said firmer bookings in recent days were being offset with a glut of tankers.
“VLs are currently trading at $ 16,000/day on TD3 and we do not see any short-term moves higher,” Arctic Securities analyst Erik Nikolai Stavseth, told Reuters.
Tanker players said downside risks remained for the sector, given risks to the global economy and the fact that more tankers, ordered when times were good, were still to join the global fleet this year.
“The demand side looks less encouraging should oil analysts' prediction of lower demand for OPEC oil materialise. Our base case is therefore for weaker oil trade and somewhat lower rates than last year,” RS Platou Markets said.

What's happening around Saudi Arabia

The Kingdom has shared very friendly relations with the United States since the beginning of bilateral ties in the 1930s when full diplomatic relations were established. Despite all the ups and downs in recent years on certain policies, especially on...
AL-NAIRIYA: Women in Al-Nairiya governorate have called on the government to only allow gender-based voting because they believe this would allow women to get places on the new municipal councils.Nouf Al-Otaibi, a businesswoman in the area, said men...
RIYADH: Women in Saudi Arabia have been allocated a package of services to ensure their development and employment, Labor Minister Mufrej Al-Haqabani said Tuesday.The minister was speaking at the first panel discussion at the second National Business...
JEDDAH: Security authorities in Turaif in the Northern Border Province have arrested a young man in his 20s for killing his parents and wounding his siblings at their house on Wednesday.The arrested man reportedly used a sharp object to kill his pare...
The Date and Palm Festival, organized by the Royal Commission for Jubail (RCJ) at the Al-Fanateer waterfront in Jubail Industrial City, has received more than 90,000 visitors since its launch last Thursday.In addition, on Sunday the event received mo...
JEDDAH: Over two million animals would be available for slaughter this Haj season, according to the Jeddah Chamber of Commerce and Industry (JCCI).Suleiman Al-Jabri, chairman of the JCCI’s livestock traders committee, said that more than 1 million sh...

Stay Connected