RECORD US EXPORTS PROVIDE SUPPORT TO LARGER CRUDE TANKERS

摘要

With the exception of the Caribbean Aframax market (where the easing of hurricane related disruptions brought average earnings down) the crude tanker market strengthened in October. Sentiment was being driven by ⅰ) rising Asian demand as refineries return from maintenance and new capacity ramps up, ⅱ) US crude exports hitting fresh record highs, ⅲ) increased West Africa trade to the US and ⅲ) weather related disruption in Europe. In contrast, clean markets came under pressure as ⅰ) US refinery runs remained curbed following the hurricanes, trimming US Gulf trade and pushing more ballasters to Europe, ⅱ) extended Asian holidays slowed enquiry and allowed tonnage to build up and ⅲ) a slowdown in Middle East trade, possibly due to the start of seasonal refinery maintenance. China Customs data showed October crude imports down 1.7M b/d m-o-m at 7.34M b/d, the lowest in 12-months due to ⅰ) destocking, ⅱ) some teapots running out of quotas and ⅲ) the Golden Week holiday. Meanwhile, oil prices rose to the highest in over two years (see oil page), pushing up bunker prices.