The tanker markets experienced an extremely volatile second quarter as the coronavirus pandemic threw all oil-related markets off-kilter, with rates on some routes swiveling from record-highs to record-lows in just a matter of months.
But with the oil market gradually rebalancing and the summer lull kicking in, freight rates are likely to stay largely steady and soft in the coming months. And according to S&P Global Platts Analytics, freight rates on the dirty tankers’ market will likely remain under pressure until OPEC+ cuts are reversed.
Rates for VLCCs on a West Africa-Far East voyage started the quarter near record-highs of over $70/mt before the oil price war coincided with a huge collapse in oil demand due to the pandemic. As the OPEC+ group decided to undertake its largest output cut ever in response to the demand slump, freight rates started their journey back down to earth…
View entirety: S&P Global Platts