Oil majors up interest in VLCC period deals

 

 

http://www.tradewindsnews.com/tankers/368577/oil-majors-up-interest-in-vlcc-period-deals 

 

Exxon Mobil and BP follow Shell in for period tanker contracts for AET and Greek vessels.

An upturn in oil majors chartering VLCCs on period contracts is the latest piece of good news for owners.

AET and Cavo d'Oro Navigation of Greece are the latest to benefit as majors look to take on vessels at a time of strong spot activity.

AET’s 300,200-dwt Bunga Kasturi Lima (built 2007) has been taken by BP on a two year charter at $42,500 per day, shipbrokers say.

Exxon Mobil is reported to have taken on the 306,300-dwt Mistral (built 2000), owned by Cavo d'Oro, for the same period at $40,000 per day.

“With VLCC spot rates expected to remain firm, it is encouraging to see several long-term time charters signed by oil majors last week,” Magnus Fyhr of GMP Securities said in a report today.

“However, while near-term fundamentals remain attractive going into the seasonally stronger winter market, we believe that slowing oil demand growth and increasing fleet growth could present challenges for the crude tanker market in 2016.”

Last week TradeWinds reported Greek owner Andriaki Shipping had locked one of its VLCCs into a two-year time charter that will yield $30.6m in revenue in the next 24 months.

Sources said the 309,000-dwt Arion (built 2001) had been taken by energy major Shell at $42,500 per day.

Spot rates for VLCCs have cooled in the past week having blasted past $100,000 pey day the previous week.

Noah Parquette of JP Morgan said the VLCC spot market slipped to $85,000 per day at the end of last week.

“Charterers seem to be waiting as long as possible to begin fixing November cargoes. We expect activity to pick up this week as November demand emerges,” he said in a report today. “However, supply still remains tight, especially in the Caribbean region.”