Suezmax Wafr rates in recovery mode in June, increasing ballast speeds
In the crude tanker segment, there has been a notable recovery in freight rates for both VLCC and Suezmax tankers. This positive trend indicates a promising summer season ahead, supported by sustained demand for VLCC tankers, which has continued for an additional week with increased growth in ton days compared to the previous week. Notably, the supply of VLCC crude oil tankers in the Ras Tanura region has been consistently declining, further contributing to the positive outlook. Additionally, the Suezmax segment has shown encouraging signs of a firmer recovery. This is corroborated by the recovery observed in Suezmax Wafr rates during June, as evidenced by an increase in ballast speeds (see image above). Overall, these developments suggest a positive trajectory for both VLCC and Suezmax markets, boding well for the crude tanker industry.
Meanwhile, oil prices experienced a 2% decline early on Thursday following remarks by Fed Chair Jerome Powell, where he indicated that there will be further interest rate hikes in the second half of the year, following a pause in the previous week. Oilprice.com reported that before the release of the EIA's weekly inventory report, the U.S. benchmark, WTI Crude, was being traded at $71.12, showing a decrease of 1.92% for the day. Similarly, the international benchmark, Brent Crude, was also falling by 1.84% and was trading at $75.67.
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