OPEC Monthly Oil Market Report – September 2017
in Europe were up from the previous month, while in the Far East, West Asia and North America,
arrivals declined by 0.01 mb/d, 0.04 mb/d and 0.43 mb/d, respectively, to average 8.82 mb/d, 4.64 mb/d and
Dirty tanker freight rates
Graph 7 - 1: Crude oil spot tanker freight rates, monthly average
Following the typical trend in the summer months,
lacked tonnage demand in general, which
prolonged the tonnage list and thus kept spot freight rates under constant pressure as they had been in
previous months. VLCC spot fright rates were softer in August on several routes as competition between
ship owners put further pressure on rates and prevented them from achieving any gains, even during days of
relatively enhanced activity.
In August, VLCC daily earnings dropped to the lowest level this year so far and low freight rates discouraged
ship owners from getting involved in longer-haul voyages. Thus, VLCC freight rates on key trading routes
Middle East-to-East and Middle East-to-West fell, with spot freight rates decreasing by 18% and 6%,
respectively, from the previous month to stand at WS42 and WS24 points. Similarly, spot freight rates on the
West Africa-to-East route declined by 10% to average WS49 points.
Table 7 - 3: Dirty VLCC spot tanker freight rates, Worldscale
was the only class in the dirty tanker segment which showed a rate increase from the previous
month as a result of higher volumes of fixtures to eastern destinations, which led to tighter ship availability.
Suezmax freight rates saw minor gains on average in August, despite new deliveries adding to the already
oversupplied tonnage market. Freight rates for tankers operating on the West Africa-to-USGC route
remained unchanged from the previous month to average WS61 points. Similarly in the West, freight rates
on the Northwest Europe (NWE)-to-USGC route stood at WS55 points.
Middle East/East (VLCC)
West Africa/USGC (Suezmax)
Mediterranean/Northwest Europe (Aframax)
Sources: Argus and Platts.
Jun 17 Jul 17 Aug 17 Aug 17/Jul 17
Sources: Argus Media and OPEC Secretariat.