Uncertainty on the high seas
One would say that the forecast is looking patchy with low winds not moving many sails.
The general outlook is a market softening, as a flotilla of vessels are coming off the back of crude floating storage that earned a healthy profit.
This ultimately has led to an increased supply in vessels on the spot market allowing charterers to gain the helm and drive down prices to where they see fit, breaking through the previous comfort level of WS60 to now low ’30s.
On the paper side this has caused a decrease in prices and lack of confidence throughout the curve, notably with JUL TD3c seeing over a 25% decrease from high 40s to mid-30s over the week and considerable selling pressure on the back end of the curve.
Demurrage hits hard
As the ongoing US-Venezuela dispute heightens vessels are left stranded holding Venezuelan crude, around 16 tankers are stuck with no discharge port holding in excess of 18 million barrels.
This is racking up hefty demurrage fees, which is not helpful for charterers but could be a nice pay day for a handful of shipowners basis how far rates have recently tumbled.
Close attention will be paid to those tankers and owners being blacklisted by the US Treasury for engaging in the oil-for-food pact helping Venezuela to swerve sanctions.