Tankers carrying heavy crude failed to bounce following the European Union’s Russian ban in December. Not so, lighter products, where rates have leapt in the opening five days of the much discussed product ban, largely on the back of strong Asian demand.
Vortexa notes MR tonne-miles out of East Asia towards Southeast Asia have surged this week.
“Stronger demand in the Asia region since early last week has tightened vessel availability, leaving more limited supply for the Mediterranean and Atlantic Basin markets,” analysts at Jefferies noted in a recent note to clients.
Looking at where Europe will source products from now Russia is off the books, Xclusiv Shipbrokers this week suggested: “Probably Europe will turn to US, Middle East and India for oil products, adding tonne miles to the wet market and in that way reducing the supply of product vessels and strengthening the freight rates.”
