OPEC Monthly Oil Market Report – October 2017
Table 7 - 2: Tanker sailings and arrivals, mb/d
Dirty tanker freight rates
Among dirty tankers, the
chartering market saw higher activity in September, mainly in the Middle
East, where tonnage demand increased sharply at the beginning of the month from recent levels.
Nevertheless, freight rate improvements were minor as tonnage availability remains, allowing charterers to
maintain an upper hand in the market, despite owners’ constant resistance to low rates. These remained
generally depressed in the absence of major delays or weather disruptions.
Table 7 - 3: Dirty VLCC spot tanker freight rates, Worldscale
On average, VLCC spot freight rates rose only by WS1 point in September compared with a month before to
stand at WS39 points. VLCC Middle East-to-East spot freight rates rose by 4% in September to stand at
WS44 points. Similarly, spot freight rates registered for tankers trading on the West Africa-to-East route rose
by 4% to average WS51 points, as the tanker market in West Africa followed the movement of the
Middle East market. However, VLCC spot freight rates on the Middle East-to-West route showed a drop from
one month before, primarily due to insufficient tonnage demand, falling by WS1 point to stand at
spot freight rates showed slightly larger gains than in the VLCC sector, with a rise of 6% on
average in September compared with the previous month, to stand at WS62 points. Suezmax freight rates
increased on the back of sudden replacement, as the class was taken as an alternative to Aframax at the
beginning of the month after Hurricane Harvey disrupted the vessel programme. Rates in the Atlantic
increased further as Hurricane Irma approached, causing freight rates registered for tankers operating on the
West Africa-to-US Gulf route to increase by 11% from the month before to WS68 points.
Sep 17/Aug 17
Sources: Oil Movements and OPEC Secretariat.
Jul 17 Aug 17 Sep 17 Sep 17/Aug 17
Sources: Argus Media and OPEC Secretariat.