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Tanker Market

OPEC Monthly Oil Market Report – September 2017

69

Tanker Market

Dirty tanker market sentiment weakened in August, as average spot freight rates declined on most reported

routes. On average, dirty tanker freight rates were down by 4% from the month before. Earnings for dirty

tankers reached the lowest level seen since the beginning of the year. Among other factors, the drop in dirty

spot freight rates was influenced by high vessel availability, as new deliveries were reportedly added to the

fleet, putting pressure on the already oversupplied tonnage market.

Average clean tanker spot freight rates also developed negatively in August despite enhanced rates

registered in East of Suez. In the West of Suez, Medium-range (MR) tanker freight rates almost doubled in

the US following Hurricane Harvey. However, the gains were shortly lived as the market found its balance.

Average MR tanker freight rates declined on all reported routes in the West with no exception. Generally,

the clean tanker market was quiet in August, showing no significant demand.

Spot fixtures

Global fixtures

rose by 1.1% in August, compared with the previous month. OPEC spot fixtures declined by

0.37 mb/d, or 3%, averaging 11.86 mb/d, according to preliminary data. The drop in fixtures was registered

mainly in the East. Fixtures on Middle East-to-East destinations were lower, as were fixtures outside of the

Middle East, which averaged 3.87 mb/d in August, down by 0.19 mb/d from one month earlier. Compared

with the same period a year earlier, all fixtures were higher in August.

Table 7 - 1: Spot fixtures, mb/d

Sailings and arrivals

Preliminary data showed that

OPEC sailings

declined by 0.5% in August, averaging 24 mb/d, though

remaining 0.32 mb/d, or 1.4%, higher than the same month a year before.

Table 7 - 2: Tanker sailings and arrivals, mb/d

Change

Jun 17

Jul 17

Aug 17

Aug 17/Jul 17

All areas

17.99

17.07

17.25

0.18

OPEC

13.16

12.23

11.86

-0.37

Middle East/East

6.01

6.23

5.58

-0.65

Middle East/West

3.31

1.94

2.42

0.47

Outside Middle East

3.84

4.06

3.87

-0.19

Sources: Oil Movements and OPEC Secretariat.

Change

Jun 17

Jul 17

Aug 17

Aug 17/Jul 17

Sailings

OPEC

24.41

24.12

24.00

-0.12

Middle East

17.62

17.66

17.22

-0.44

Arrivals

North America

10.72

10.20

9.77

-0.43

Europe

12.00

12.04

12.51

0.47

Far East

8.74

8.83

8.82

-0.01

West Asia

4.49

4.67

4.64

-0.04

Sources: Oil Movements and OPEC Secretariat.