Asian clean tanker rates rose on Thursday, boosted by heightened trans-Pacific arbitrage bookings as traders anticipated a product pinch following BP's closure of its large Prudhoe Bay oilfield.
Rates for Long Range 2 (LR2) clean fuel tankers moving from the Middle East into Japan were valued at about W240 levels or $2.7 million, up about $300,000 from Monday's Asian close and about 5 points higher from Wednesday's Baltic Exchange close.
"The market is running up fast, and it's a culmination of different reasons, but more so that there is demand, demand, demand," said a Singapore-based shipbroker. On Thursday, shipbrokers reported a total of five LR 2 bookings out of the Middle East. A total of 150,000 tonnes of naphtha is slated to load in early September, with liftings scheduled for ports in South Korea and Japan.
A total of 140,000 tonnes of jet fuel has been booked into Continental Europe, with Vitol confirmed to take the Alonissos for loading on August 30, shipbrokers said.
Rates for medium-ranged (MR) clean fuel tankers moving from Singapore into Japan were up 25 points from Monday's Asian close, at W335, and about 8 points higher than Wednesday's Baltic Exchange settlement.
"Suddenly MRs are in demand everywhere, including the Middle East, the arbitrage routes are heating up, and the intra-Asian activity is also rising," a shipbroker said.
A total of five fresh MR tanker bookings from North Asia to the US West Coast was reported on Thursday, with rates being quoted at around $1.75 million, up about $150,000 from week-ago levels. Shipbrokers reported the bookings of the MR tankers - High Century, British Loyalty, Torm Helvig, Oriental Ruby and New Confidence - from South Korea into the US West Coast.
A total of six MR tanker bookings were reported out of the Middle East, putting further strain on tonnage supplies. MR tanker loadings out of Singapore saw increased activity as refiners looked to move system barrels into Australia and Guam. "All this activity has really sent charterers scrambling for tonnage, its an unusual situation which is only going to get worse in the short-to-medium term," a shipbroker said.
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