Blast from the past

Crude tanker rates are repeating a pattern seen during the previous cyclical upturn over a decade ago, Global Hunter Securities believes.
Omar Nokta.

Omar Nokta.

Analyst Omar Nokta says VLCC, suezmax and aframax rates are all riding high for the first time in a number of years. 

In his weekly report, Nokta wrote: “It has been several years since all three segments behaved in this manner and it mimics the improvement in charter rates during the winter of 2003/2004, when the market began to break away from the 2002 recession and into the 2004-2008 bull market.”

He placed VLCC rates at $45,000 per day globally, with suezmaxes at $85,000 and aframaxes at $80,000 on average. 

“Much of the strength has been driven by increased winter trading activity, though we note that overall fixings do not appear out of the ordinary for this time of year,” he said.

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