Fiji Time: 9:23 AM on Friday 19 January

Fiji Times Logo

/ Front page / Business

Surge in oil exports good for shippers

Reuters
Saturday, November 11, 2017

CUTS in OPEC output that have led to a surge in US oil exports to Asia may prove a godsend for struggling global shippers, driving rates for large crude shipments to China, India and other major oil importers sharply higher over the next year.

Operators such as Frontline Ltd, Euronav and Gener8 Maritime are still recovering from five years of weak rates and falling profits, and face more financial headaches after a glut of new supertanker launches.

But OPEC's strong compliance with output cuts agreed in 2016 is boosting prospects for the business by raising demand for previously little-used US-Asia routes and allowing tankers to refill in the Gulf on return journeys to the United States.

"The impact of rising Asian demand will not be seen in strong earnings in the next two quarters, because there is still the problem of overcapacity," said George Los, the head of tanker research at US ship brokerage Charles R Weber Company.

"But by mid 2018 and by 2019 it will be able to make a notable impact on VLCC (Very Large Crude Carrier) rates."

The rate to ship US crude oil from the Gulf of Mexico to Singapore TD-LPP-SIN — still a relatively new route — has risen more than 50 per cent since August to stand at $US15.54 ($F32.16) per tonne.








Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Westpac
Code Inward TTs Outward TTs
CAD 0.62430.6053
JPY 56.394453.3944
GBP 0.36130.3533
EUR 0.41130.3993
NZD 0.69520.6622
AUD 0.63140.6064
USD 0.50390.4869

from

$0.00

Exchange Rate updated on 18th, January, 2018

Today's Most Read Stories

  1. Trip turns tragic
  2. Mela beats the odds
  3. Tube ride to school
  4. Ill will aside
  5. FLP searches for party leader
  6. Call to save reefs
  7. Konrote joins walk
  8. River swim to reach school
  9. Fiji NSWRL bid team receive endorsement
  10. Protecting the Great Sea Reef

Top Stories this Week

  1. Fitting farewell for Bill Friday (12 Jan)
  2. Trip turns tragic Thursday (18 Jan)
  3. Love will keep us together Sunday (14 Jan)
  4. $100 a day Sunday (14 Jan)
  5. Air NZ confirms incident Friday (12 Jan)
  6. Mela beats the odds Thursday (18 Jan)
  7. Capt William calls it a day after 45 years Sunday (14 Jan)
  8. Nadi man dies in crash Wednesday (17 Jan)
  9. National strike if no resolution, says FTUC Sunday (14 Jan)
  10. Teachers transfer policy Monday (15 Jan)