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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
The June increase in freight rates for VLCCs is likely coming to an end as Saudi Arabia’s crude oil production cuts for July are weighing on market sentiment according to market sources.
- China has stepped up crude buying in recent weeks before the additional output cut from Saudi Arabia will come into effect, which supported freight rates and VLCC rates from the Middle East to China.
- "Rates on larger tankers are going to crumble, I think," one London-based shipbroker said.
- Platts, part of S&P Global Commodity Insights, last assessed Dirty Arab Gulf-China 270,000 mt freight at $20.91/mt June 21, having surged 90% since the start of June. However, freight rates have wavered in recent days, having dipped from the recent high of $21.41/mt seen June 19.
- Comparatively, the five-year average for the route stands at $11.74/mt.
- "VLCCs export nearly 90% of Saudi Arabia's seaborne crude oil exports, and the Saudi Arabian exports provide nearly one third of all volumes carried by VLCC", shipping industry group BIMCO said.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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