VLCC Market Report – April 20, 2017

MARKET DIRECTION……..: POISED

MARKET REPORT………..: IT SEEMS LIKE ONE OF THOSE DAYS IN 2015-16 WHERE VLCC’S COULD GET OVER 6 MILLION USG/CBS-SPORE.  THE SAME MARKET CONDITIONS THAT ENABLED OWNERS TO ACHIEVE THOSE RATES ARE BACK IN FORCE TODAY.  THE PROBLEM IS, WHY IS THIS HAPPENING?  OPEC CUTTING PRODUCTION, PRICE OF CRUDE DROPPING BECAUSE THERE IS TOO MUCH OF IT (FINALLY SOMEONE FIGURED THAT OUT…), AND THE GENERAL SENTIMENT OF A BEARISH VLCC MARKET.  AND YET WE HAVE RISEN OVER 800K PER VOYAGE SINCE THE BEGINNING OF THE MONTH. TAKING ALL OF THAT INTO ACCOUNT, THE ARABIAN GULF IS ALSO STRONG WITH NO SIGNS IN THE FUTURE OF SLOWING DOWN.  THIS WILL KEEP BALLASTERS OUT OF THE WEST AFRICA BUSINESS, AND THAT WILL START A RIPPLE EFFECT RAISING RATES GLOBALLY.

RATE ESTIMATES
————– 

AG/USG………..:      280 X W40     – FIRM    TCE=  $30200.00 (SPORE-RAS TANURA-LOOP)
WAFR/USG………:      260 X W75     – FIRM    TCE=  $39000.00 (HOUSTON – BONNY – HOUSTON)
WAFR/EAST……..:      260 X W70     – ACTIVE  TCE=  $36800.00 (SPORE – BONNY – NINGBO)
NSEA/SPORE…….:      270 – LS3.7M  – FIRM    TCE=  $31000.00 (GIBRALTAR – RDAM – SPORE)
USG/SPORE……..:      270 – LS4.4M  – FIRMING TCE=  $59800.00 (USG – SPORE – RAS TANURA)
CBS/SPORE……..:      270 – LS4.45M – FIRMING TCE=  $56600.00 (CBS – SPORE – RAS TANURA)

DEMURRAGE……..:      LOADING WEST AFRICA: $40,000 BASIS USG/UKCM : $35,000 BASIS FEAST
LOADING US GULF/CBS: $57,500
LOADING CONT/NSEA..: $35,000

CARGOES……….:      SOCAR       VLCC CEYHAN/TAIWAN      5/01-03
                        TOTAL       VLCC WAF/CILACAP        5/17-19                       

************
**FIXTURES**
***********************************************************************************************************

VESSEL              CGO DATE LOAD/DISCHARGE    RATE      CHARTERER
MARKET FIXTURES APRIL 20, 2017
DHT LAKE            270 5/09 CBS/JAMNAGAR      RNR       RELIANCE
HONG KONG SPIRIT    260 5/22 WAF/CHINA         COA       UNIPEC
DHT AMAZON          275 5/15 H.POINT/CHINA     LS$4.925M UNIPEC
MARKET FIXTURES APRIL 19, 2017
STARLIGHT VENTURE   270 5/06 CBS/JAMNAGAR      LS$3.95M  ESSAR
LAYLA               270 5/01 CBS/SPORE         LS$4.3M   MERCURIA
NEW PEARL           270 4/26 CBS/EAST          RNR       PETROCHINA
BRITANIS            260 5/11 WAF/CHINA         RNR       UNIPEC
AQUARIUS            260 5/16 WAF/CHINA         WS70      DAY HARVEST
MARKET FIXTURES APRIL 18, 2017
EAGLE VANCOUVER     260 5/09 WAF/CHINA         WS68.75   UNIPEC
MARKET FIXTURES APRIL 17, 2017MISTRAL
270 5/25 CBS/WCINDIA       RNR       RELIANCE