Baku, Azerbaijan, July 15
By Leman Zeynalova - Trend:
OPEC sailings declined by 0.5 percent in June, averaging 24.22 mb/d, and were down 1.2 percent y-o-y, Trend reports citing OPEC Monthly Oil Market Report.
Sailings from the Middle East rose 0.9 percent m-o-m, representing a gain of around 0.16 mb/d, but were still 1.0 percent, or 0.18 mb/d, lower compared to the same month last year, reads the report.
“Crude arrivals were mixed across regions. Arrivals in West Asia saw the biggest gain, with an increase of
8.7 percent or 0.39 mb/d. West Asian arrivals showed a similar increase y-o-y. Arrivals in Europe were also higher, up 2.7 percent, or 0.32 mb/d, but were 1.1 percent, or 0.13 mb/d, lower y-o-y,” said the cartel.
In contrast, arrivals in the Far East fell 4.3 percent, or 0.4 mb/d, in June, down from the high level seen in the previous month; however, they showed a marginal increase y-o-y. In North America, arrivals fell 3.5 percent, or 0.36 mb/d, but were 0.7 percent higher y-o-y, said OPEC.
The report shows that VLCC spot freight rates edged up in June as the end to spring maintenance across various jurisdictions helped lift activity. However, ample availability kept a lid on rates.
“Freight rates registered for tankers operating on the Middle East-to-East route rose 12 percent compared to the previous month to stand at WS44 points in June. Rates benefited from a ramp up of new capacity in China, as well as the gradual return of refineries from maintenance,” reads the report.
The cartel said Middle East-to-West routes in June experienced a gain of 5 percent m-o-m to stand at WS20 points.
“West Africa-to-East routes in June also showed gains, increasing 10 percent from a month ago, to average
WS45 points. Despite these increases, VLCC freight rates in June were 12 percent lower than the same month a year ago,” the report reads.
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