While the global oil market is not out of the woods yet regarding the demand-destructive coronavirus, a number of buyers were eager to snap up volumes at low prices, especially since freight rates have plunged. After the US shocked the freight market by imposing sanctions on Chinese shipping giant COSCO in the autumn, VLCC rates surged to $100K/d, but they have recendy been cited at just $23K/d. Some traders are reportedly arranging for ship-to-ship transfers to move oil from tankers chartered earlier at higher prices to more-recently-chartered vessels that will incur lower daily charges. Price support also came from the expectation of at least some members of the OPEC+ coalition reducing output to counter COVID-19's bite into demand and the return of some Chinese buyers after the Lunar New Year holiday period that was extended due to the virus. As of Feb. 18, seven cargoes of Middle Eastern crudes had been traded within the month's Platts Market on Close (MOC) windows-the same number of such cargoes that were traded during MOCs throughout all of Jan.
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