Ton Mile Trader

IMAREX - ASIAN CLEAN TANKER FFA REPORT

2 July, 2009

OF INTEREST TO ALL:

Don’t miss the chance to register for the Imarex Academy Professional FFA Trading Courses in 2009:

This is a unique opportunity to learn how FFAs work, how they trade, how they link to the time charter market and to product arbitrage. Learn how to trade these exciting derivative contracts effectively. For more information and registration forms, please refer to http://www.exchange.imarex.com/imarex-academy/category488.html

Clean Tanker FFA Summary:

TC4 (MR SG-JP 30KT) Paper markets were lively, but weaker through the curve. Jul started and ended with 85 given and followed 85 bid. Q3 saw 93 and 92 given and worked 91 at 93 after. Q4 traded at 6.5 pts over Q3 three times as a spread which set 98.5 and 99 as Q4 levels. Thereafter 97 at 100 was worked. The net effect was to see contango erode further as traders foresee no change in the vessel supply situation.

TC5 (LR1 AG-JP 55KT) As with the TC4, TC5 was in the red again. Jul paper didn’t chalk up a trade until midnight, but 97.5 was lifted as part of a Jul/Sep spread at -7.5. The market worked 96 at 97.5 on the follow. Aug was given from 104 down to 102 and was 102 at 103.5 at the close. Q3/Q4 spread traded -5.5 with the Q3 leg at 101. The Q3 bid that followed was 98 with offering at 102. Q4 traded 108, 106.5 (spread) and 107 last with 105.5 at 106.5 left working.

TC11 (TRIAL SKOR–SING 40KT) The assessment slipped another 4¢/mt to $8.94. No new fixtures were reported to back up this quote.

Physical market talking levels:

MR: Sing/Jpn estimate W75 Yesterday’s report made reference to a week old MR position list which at the time had some 35-40 vessels open AG PPT. We’ve subsequently heard that the figure has been whittled down into the teens. The GOTLAND ALIYA is a small improvement for India/AG loading, but not enough to break out the champagne for.

LR1: Ag/Jpn estimate W93 The spot assessment eased a tick and likely should not have been as high as W94 as nothing has fixed (to our knowledge) higher than W92.5. A look at the position list shows 9 LR1s open AG before the 10^th and just 2 or 3 LR2s. Where then are the cargoes? At the end of last week, all the chatter was about owners holding out for 100, but with another 2 vessels failed (see STARLING & SELINI below), the push over the top will be harder to make.

LR2: Ag/Jpn estimate W85 Spot held steady here while as mentioned above, open AG positions remain few. We have heard that some of the vast herd of vessels being used for floating storage in the West are about to be released back into the wild, but this is likely not going to make a dent in the estimated 50 in such use. The SUVRETTA tops the ATLANTIC SPIRIT (reported on the 19^th) if UKC by $250k.

Reported fixtures: