Aframax average earnings declined in Aprilrnbecause of sluggish Mediterranean demand.rnSpot rates on the Black Sea to Med routernremained low as intake of Ural was affectedrnby refinery closures. Lukoil’s 140,000 b/drnBurgas plant in Bulgaria and Tuprus’srn227000 b/d Iizmit plant in Turkey remainsrnunder maintenance. Additionally, the recentrnsupply disruption in Libya is a major setbackrnfor the Aframax segment. Libyan productionrndwindled by 80,000 b/d after an explosionrnat a pipeline, stretching from Zaggut tornEs Sider terminal, curtailed output flow.rnSimilarly, refinery maintenance in India hasrnkept tonnage demand on the AG-Asia routernweak. Demand in the Baltic and Black Searnregions will continue to be marred by lowrnRussian exports to Europe as the country isrndiverting its crude towards Asia. However,rntonnage demand in the Mediterranean regionrnwill be supported from the rising crude flowrnfrom Kazakhstan as the country continuesrnto exceed the production limit set by OPEC.rnAdditionally, strong US exports on short-haulrnroutes and firm demand for lighterage andrnreverse lighterage operations in the USG willrncontinue to support the Aframax demandrnin the coming months. Moreover, recoveryrnin refinery runs in Asia towards the end ofrnsecond quarter will cap any further softeningrnin rates from the current levels.
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