VLCC tanker market report for week ending Sep 6By james tweed • Sep 6th, 2013 • Category: Tankers
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Thanks for downloading the VLCC Tanker Market report podcast from Coracle and Braemar Seascope for September 6th 2013.
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All eyes were on the G20 summit meeting on Thursday being hosted by Russia’s President Putin in Saint Petersburg. Whilst the US Senate panel has approved use of force against Syria many feel that the G20 world leaders will not be able to make a decision on the outcome. Whilst both charterers and ship owners anxiously wait for a decision, the VLCC market within the AG has softened slightly from the 34 level achieved midweek to 32 for long east. There has been a relatively high volume of fixing during the week with approximately 50 covered on the back of volatile oil prices with very little movement in market levels.
With the Saudi stem confirmation for the October programme not expected until mid-September, we expect rates to remain similar to this week provided there is no escalation in the Syrian crisis.
The first signs of early October stems from West Africa were seen this week. Even though the tonnage list reflected a large number of potential eastern ballasters for first decade of the month, the realistic ships that were willing to commit to West Africa were fewer. Chinese charterers had to pay 36 for a first decade stem from West Africa which is a couple of points above what was fixed for an end September Laycan. Pooled tonnage has been the charterer’s best option due to the flexibility offered by them on their positions.
Charterers have been busier off the Continent this week than in recent times. Clearlake took a couple of ships around the $3.25m mark and Vitol have been rumoured to be looking at September barrels from the region.
The 30 day availability index shows 55 VLCC’s arriving at Fujairah of which six are over 15 years old compared to 72 last week and so far for September we have seen a total of 107 fixtures concluded. The bunker price is $610/tonne.
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