Photograph: Euronav
Crude vessel prices have actually pressed greater over the recently with place VLCC prices (TD3) at $31k/d as well as Suezmax prices (TD20) at $27k/d– up from the low-mid $20k/d variety early recently, according to a research study note by Greg Lewis, taking care of supervisor as well as power as well as delivery expert, at New York City based broker agent company BTIG.
“More impressive has been the surge in MR product rates in the Atlantic now around $30k/d (up from ~$18k last week),” claims the BTIG note. “We think the current stabilization/up-turn in the VLCC market has actually been driven at the very least partly by a ‘Convergence Trade’ to the Suezmax market. Interestingly, while VLCC prices (TD3) broke down in February balancing ~$ 19k/d (down ~ 15% from February 2019); Suezmax prices (TD20) balanced ~$ 27k/d in February (up ~ 90% from February 2019). We think this price misplacement in between VLCCs as well as Suezmaxes saw some VLCCs rearrange to trade versus Suezmaxes which aided tighten VLCC prices.
“More encouraging over the last week has been that the Suezmax market looks to have absorbed the VLCC competition with Suezmax rates flat to up. While heading into Spring is typically a tough time to own tanker stocks (refinery maintenance season) with tanker stocks down roughly 30% since mid-January and many tanker stocks trading at 30-40% discounts to NAV we believe there is a rebound trade to be had, but we will need to get through this week’s OPEC meeting first.”
Read the BTIG note HERE
