Tanker Rates Skyrocket To Fill Colonial Pipeline Shortages
By Elizabeth Low (Bloomberg) Oil tanker charter rates skyrocketed in the U.S. with refiners scrambling for ships to store fuel that has nowhere to go due to a cyberattack on...
Rates for medium-range (MR) tankers for 37,000-tonne cargoes on the TC2 route from Rotterdam to New York were at W115.71, or $7,887 a day when translated into average earnings.
That compared with W116.21 or $7,890 a day on Friday and W116.21 or $7,606 a day last Monday.
“With the U.S. firmly in the summer driving season and gasoline demand figures for last week showing a year-on-year gain, volumes on the route could remain elevated,” broker CR Weber said.
Last month, earnings reached their highest since mid February, helped by firmer bookings for gasoline cargoes to the U.S. and product shipments to Argentina.
Long Range 1 tankers, carrying 55,000-tonne loads from the Middle East Gulf (MEG) to Japan, were at W89.92 or $3,612 a day.
That compared with W90.54 or $3,485 a day on Friday and W95.86 or $5,450 a day last Monday.
Larger Long Range 2 or LR2, 75,000-tonne shipments on the Middle East Gulf to Japan route were at W74.18 or $4,329 a day. That compared with W74.45 or $4,085 a day on Friday and W73.05 or $3,459 a day last Monday.
“The LR1 and LR2 markets remain in the doldrums with only modest activity,” Deutsche Bank analyst Justin Yagerman said.
Late last year the volume of LR1 fixtures jumped to their highest in years, helped by healthy naphtha and jet fuel bookings to Asia, sending earnings to their highest since early October 2009. (Reporting by Jonathan Saul; editing by James Jukwey)
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