A Key Indicator Low Oil Prices Are Lifting Demand
Think there aren’t any splendid spots for line prices right now? News this week suggests we should consider again.
One astonishing marketplace in fact strike a vital cost miracle on Monday. Rising to a tip turn in half a decade.
Platts reported that suffering prices for VLCC (very vast wanton carrier) ships rose to $100,000 per day on Monday. The initial time rates have strike this turn given 2010.
Rates are reportedly using generally high for VLCCs sailing from a Persian Gulf to East Asia. As good as for vessels franchised from West Africa, headed to Asia.
Sources in a attention attributed a arise to clever shipping direct out of China. With attention sources observant that mandate for wanton oil in China “aren’t entirely met.” Prompting Chinese buyers to licence some-more VLCCs to move in additional shipments.
The many engaging thing about this news is it flies in a face of new reports about an mercantile slack in China. With a pricing numbers in fact display that Chinese oil users still need a lot of supply — so most so, they’re peaceful to compensate tip dollar to move it in.
This growth also suggests that currently-low tellurian oil prices are lifting demand. With marketplace sources observant clever shopping seductiveness for VLCCs is also entrance from places like Japan.
This is good news for oil shippers, and a acquire growth for a oil marketplace in general. It also provides a initial plain information indicate display that reports of China’s mercantile passing — and a attendant worries about line markets — might be severely exaggerated.
Here’s to attack highs.
Courtesy: Dave Forest
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