West African Crude Imports May Lift Day Rates for VLCCs

pazflor fpso
Total’s Pazflor FPSO off Angola produces up to 220,000 barrels of oil per day.

Increased Asian imports of West African oil may lift demand for very large crude carriers as daily rates stay below $15,000, according to the Baltic and International Maritime Council, known as Bimco.

“Average earnings in the VLCC segment will keep owners on the rack, as they are unlikely to escape the agonizing lows around $2,000-$15,000 per day,” Peter Sand, an analyst at the Bagsvaerd, Denmark-based trade group representing 65 percent of ship owners, said in an e-mailed report. “A potential upside could come from increased Asian imports from West Africa.”

– Isaac Arnsdorf, Copyright 2012 Bloomberg