Ton Mile Trader

Clean Tanker FFA Summary:

TC4 (MR SG-JP 30KT) Paper traded lower as the steam came out of the LR market. Aug was given at 286, 284 and later 282 and left offers in the low 80’s looking for bids. Q4 gave way from early bidding at 272 to 268 at 274 by days end.

TC5 (LR1 AG-JP 55KT) spot maintained w315, however reports of late Aug LR1 fiixtures made the current high value appear unsustainable. Aug paper was given from 305 down to 300 and left offers at 295. Sep traded 286, 285 & 284 and also offered for more. Q4 tested a 266 buyer who backed off and left 266 offered at day’s end. Q1 worked 185 at 190 through most of the move, relatively unaffected bu the front movement.

TC2 (MR ARA-NY 37KT) spot continues lower with another 5 pts slip to w231. Aug swaps were better off though as NYMEX gasoline bounced off the lows and made arb possibilities more workable. The RBOB minus NWE non-oxy closed at $36.35/mt and Aug paper responded with improved trading levels, as high as 255 then ending either side of 250. W250 means $25.50/mt equivalent. Sep paper likewise improved with trades at 257 and a closing range of 257 at 261. Q4 saw buying interest for the first time in a few days and left 260 at 265 after 262 was heard lifted.

Physical market talking levels:

· MR : MR Sing/ Jpn easing off slightly, estimate W295 -W300, AG rates ease off slightly as well and north activities appear to have slowed down. Last heard was the Petro Venus on subs 11/Aug Blang Lancing /Yeosu GS Caltex w290

· LR1 : W310 – W315 lvl, hearing quite a few vsls on subs, however not many details. Last heard was the Frontier express on subs internally to M-beni rumour lvl of W315 and the Summit Europe 55 nap AG/ east W3121.5 on subs to Shell.

· LR2 : W310 lvl last heard Torm Mariann on subs for long haul but no details.

Reported fixtures: