In the second week of November, freight charges for crude oil tankers remained agency with slight indicators of a downward correction. The upward momentum of early November within the second half of November stays unsure as there are indicators of a rise within the provide of crude oil tankers, which contrasts with the downward pattern noticed on the finish of October.

Trying on the demand aspect of the equation, the expansion charges (in tonne days) look like strengthening. This pattern is predicted to proceed because the winter season approaches, and Chinese language crude oil imports have seen a big enhance in October. It’s additionally price noting that crude oil exports from the US have elevated considerably this 12 months.

Korea has even changed China as crucial vacation spot for American crude oil, which is an fascinating improvement on the worldwide oil market.

Oil costs decreased this week reaching their lowest ranges for the reason that finish of July. This decline could be attributed to a mixture of things, together with blended financial knowledge from China, elevated OPEC exports and the strengthening of the US greenback. Based on Reuters, Brent crude futures closed under $80 a barrel on Wednesday for the primary time for the reason that Hamas Islamist assault on Israel on October 7. Brent crude futures dropped, settling at $79.54 per barrel, whereas U.S. crude adopted swimsuit, closing at $75.

These numbers marked their lowest factors since mid-July. Including to the downward strain, U.S. crude oil shares noticed a big uptick, climbing by practically 12 million barrels final week, in accordance with data from market sources on Tuesday citing American Petroleum Institute knowledge.

​​​​The crude oil freight market charges began to lower after the spikes in the beginning of November.

VLCC MEG-China freight charges held round 70 WS, up 90% from an identical week a month earlier.

Suezmax freight charges for shipments from West Africa to continental Europe reached WS 140, 20 factors decrease than the earlier week, up 90% from the earlier month. Charges on the Suez-Baltic-Med route remained agency at round 170 WS, up 130% from the earlier month.

Aframax Med freight charges have exceeded the WS250 stage for the reason that starting of November, and present charges at the moment are 130% increased than a month in the past.

‘Product’ WS
LR2 Weaker

LR2 AG freight charges fell to 140 WS, down 12% from the earlier week however up 3.5% from a month in the past.
Panamax Firmer

Panamax Carib-to-USG charges have firmed additional and m not too long ago stood at WS 250, 66% increased than a month in the past.
‘Clear’

MR Blended

MR1 charges for the Baltic continent fell to WS 165, down 20% from a month in the past.

MR2 charges for shipments from the continent to the U.S. elevated for the primary time after stagnating for greater than 5 consecutive weeks. Charges have been round 210 WS, 30% increased than the earlier week.

SECTION 2/ SUPPLY

‘Soiled’ (#vessels) – Blended

With nonetheless indicators of a rise in VLCC for the Ras Tanura and Suezmax Wafr Bonny, November continued with a downward strain within the Aframax section.

VLCC Ras Tanura: The variety of ships has elevated to 73 13 above the annual common, with an upward pattern for the second week of November.

Suezmax Wafr: The variety of ships recorded a big enhance regardless of the earlier week’s indicators for a decrease quantity. The latest ranges are virtually 30 vessels increased than three weeks in the past.

Aframax Primorsk: The present variety of ships is 28, which is sort of 5 under the yearly common.

Aframax Med Novo: The variety of ships has remained on the identical stage because the annual common for the reason that finish of week 41, with the latest determine virtually exceeding 10.

‘Clear’
LR2 (#vessels) – Growing

MR1 (#vessels) – Growing

Clear LR2 AG Jubail: The most recent determine rose to a brand new excessive of 15 after hitting a low of three every week in the past. That is the primary time for the reason that finish of week 25 with such a excessive stage.
Clear MR1 Algeria Skikda: At round 30, the variety of ships recorded was under the annual common, though the pattern is rising. Nevertheless, the figures look like effectively under the height of week 40 (~48 ships).

SECTION 3/ DEMAND (Tonne Days)

​​‘Soiled’ Blended

Soiled tonne days: Regardless of the expectation of an upward pattern in VLCC demand, the Suezmax and Aframax segments bucked the pattern this week, sustaining the momentum of earlier weeks. It will likely be fascinating to see how world crude oil demand continues to develop, particularly as considerations over oil costs steadily ease amid the disaster within the Center East, placing a damper on the earlier worth escalation.

‘Clear’ Lowering

Panamax tonne days: The expansion price has continued to fall sharply for the reason that final peak in week 43.

Clear MR tonne days: The outlook for demand development has weakened additional for MR1, with no signal of a restoration but for November, whereas the downward pattern for MR2 is much less pronounced than the lows of weeks 25 & 27.
Supply: Sign Group, By Maria Bertzeletou, https://go.signalocean.com/e/983831/Account-Login/2pkcf7/359863236/h/FZ7q6ONm-3Vd2EcqrKPPhbiQsCY_vYVlpfLir7SgIo8