Tankers

Crude
VLCC Ag/East  51  ($35k) touch softer
SM Wafr/Usac  70  ($24k) softer, maybe 65

A few fixtures and a few failures has left the July count at 44, though the benchmark V rate could now be rated in the low 50s. Assuming we have 50-55 cgos left for next month – the position list should be able to handle these requirements without much difficulty, though counting ships versus expected cgos has often been a fool’s errand. The Atlantic basin has cooled a bit – with TC5 spot rates falling closer to the ws 70 mark.

Crude FFAs are quiet with few clues provided. TD3 July priced at about 51/52. Forward curve is in slight backwardation for balance of year, with pricing in the mid/high 40s going forward.


Clean
37kt Cont/ta   105 ( $7.3k)  firmer
38kt Cribs/up  80  ($1.9k)  slightly firmer on atl basin strength
55kt Ag/East  95   ($13k)   about same

Cont/ta continues to improve on steady demand as the arb remains slightly open. We also hear of mogas shipments on the Cont/Wafr run, as refinery issues are keeping local production down (HT Bald Viking). Pre-holiday activity could bring more action to the Atl basin over the next two-three days. From the ATS Report, “In a surprise move on Monday China increased its domestic gasoline and diesel prices by around 9 % and 10 % respectively. This seems to indicate that Beijing is serious about keeping its domestic markets reasonably in line with the international markets, but might also have the effect of pegging back the nascent recovery in Chinese demand.”

TC2 has seen limited trading, with the July bid/ask implying a next done of 109 or so...a few points above spot. TC4 is again the most active clean contract, with Q3 losing 4 points to 95. TC5 July is merging towards the current spot level, as it loses 5 points to 98.