OPEC Monthly Oil Market Report – November 2017
Table 7 - 2: Tanker sailings and arrivals, mb/d
Dirty tanker freight rates
VLCC spot freight rates
showed notable gains in October from a month before across
all reported routes. On average, VLCC spot freight rates soared by 37% m-o-m to stand at WS55 points, up
by 4% y-o-y. Rates increased on all major trading routes, mainly on the Middle East-to-East route where spot
freight rates went up by WS24 points from a month before to average WS68 points. Similarly, the chartering
market in West Africa (WAF) strengthened and earnings in both WAF and Middle East were higher. The
VLCC market saw high activity to eastern destinations, despite holidays in the Fareast. VLCC spot freight
rates on the WAF-to-East route rose by 33% to average WS68 points. October tonnage availability saw an
occasional tightening as market activities saw the usual seasonal uptick.
Table 7 - 3: Dirty VLCC spot tanker freight rates, Worldscale
VLCC Middle East-to-West spot freight rates recovered, though to a lesser extent, up by 22% in October to
stand at WS28 points, but remained below the level in the same month a year earlier. Generally, VLCCs saw
healthy demand in October on all major trading routes though spot freight rates gains varied, with a noted
difference in old and modern vessel rates.
Suezmax spot freight rates
continued to rise by an average of 12% in October from one month earlier,
despite an excess in ships with all replacement requirements having been met easily. Average Suezmax
freight rates remained healthy, supported by higher rates registered for tankers trading on the Northwest
Europe (NWE)-to-US Gulf Coast (USGC) route, which gained 8% to stand at WS60 points. Suezmax spot
freight rates for tankers operating on the West Africa-to-USGC route went up by 17% from a month before to
stand at WS79 points. The Suezmax market experienced occasional softer sentiment in West Africa as
activity levels varied. In the North Sea, Suezmax saw limited inquiries, while rates in the Black Sea and
Mediterranean were supported by vessels tightening and a spill-over effect from the firming Aframax market,
which supported Suezmax demand on a part-cargo basis as a suitable alternative.
Oct 17/Sep 17
Sources: Oil Movements and OPEC Secretariat.
Aug 17 Sep 17 Oct 17 Oct 17/Sep 17
Sources: Argus Media and OPEC Secretariat.