Suezmax, aframax tanker rates slip
SUEZMAX and aframax tanker rates on Baltic Exchange's benchmark routes lost around 15% in the past week even as analysts warned that softening crude demand would be exacerbated by the post-summer seasonal decline.
According to MANA,The large product oversupply presents a risk to refinery margins and therefore physical oil buying over the coming months, Morgan Stanley’s commodity strategist Adam Longson said, adding that oil refiners were expected to pull back on oil purchases heading into the autumn maintenance season.“We are already beginning to see evidence of falling appetite for crude oil as front month time spreads are slowly weakening around the world,” Mr Longson said. Front month time spreads are differences in the prices of immediate oil futures contracts and indicate the health of current demand levels.