OPEC MOMR August 2017
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Tanker Market

OPEC Monthly Oil Market Report – August 2017

65

Suezmax

Suezmax spot freight rates

turned flat in July in comparison to the previous month, standing at

WS58 points on average. Suezmax freight rates were often under pressure during the month. The Suezmax

market suffered from excess availability, which prevented freight rates from registering significant gains,

even during relatively higher tonnage demand days. The chartering market in West Africa experienced an

occasional tightening of vessel supply which seemed to support freight rates at that point however the

situation cleared rapidly bringing back freight rates to previous levels. As a result, spot freight rates

registered for tankers operating on the West Africa-to-US route were almost stable compared to those of the

previous month and averaged WS61 points, showing only a slight increase of WS1 point m-o-m. Spot rates

on Northwest Europe (NWE)-to-US routes decreased by 3% to average WS55 points.

Table 7 - 4: Dirty Suezmax spot tanker freight rates, Worldscale

Aframax

Aframax spot freight rates

showed a decline across all reported routes in July from one month before.

On average, Aframax freight rates dropped by 6%. Lower freight rates were driven by several factors

including field and berth maintenance, limited chartering activities and, most importantly, a prolonged

tonnage list.

Rates could have deteriorated further but for enhanced activity combined with a lighter position list,

nevertheless, despite an occasional increase in activity, rates were mostly maintained at last done levels.

Rates in the Mediterranean continued to decline by similar levels as in the previous month. Spot freight rates

for Mediterranean-to-Mediterranean and Mediterranean-to-NWE routes declined by 8% and 9% to stand at

WS84 points and WS77 points, respectively. The Caribbean’s Aframax charter market had an uneventful

month as rates often showed no changes, hence Caribbean-to-US average rates dropped by only WS1

points from the previous month to stand at WS92 points.

Aframax freight rates in the East dropped on the Indonesia to-the-East route by 7% to average WS 87 points.

Table 7 - 5: Dirty Aframax spot tanker freight rates, Worldscale

Size

Change

1,000 DWT

May 17 Jun 17 Jul 17 Jul 17/Jun 17

West Africa/US Gulf Coast

130-135

75

60

61

1

Northwest Europe/US Gulf Coast

130-135

69

57

55

-2

Sources: Argus Media and OPEC Secretariat.

Size

Change

1,000 DWT

May 17 Jun 17 Jul 17 Jul 17/Jun 17

Indonesia/East

80-85

97

93

87

-7

Caribbean/US East Coast

80-85

123

93

92

-1

Mediterranean/Mediterranean

80-85

116

91

84

-8

Mediterranean/Northwest Europe

80-85

113

85

77

-8

Sources: Argus Media and OPEC Secretariat.