West African crudes have fallen steeply against Atlantic basin benchmark North Sea Dated as a result of runaway very large crude carrier (VLCC) and Suezmax freight rates to Asia-Pacifc. Demand for November-loading cargoes of west African crude has fallen since the US imposed sanctions on subsidiaries of Chinese shipping frm Cosco on 25 September. Freight rates for 2mn bl VLCCs rose to record highs and the cost of a trip from west Africa to China peaked above $11/bl on 11-14 October (see graph). Rates have retreated to $6/bl since then, but remain well above the $2.60/bl average in August-September.
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