Cross-Med aframax rates tumble w105 as demand from Ceyhan halves
Mediterranean aframax rates tumbled 105 Worldscale points Wednesday morning to w200 on news that a June loading program from the Turkish port of Ceyhan contains only half the usual number of aframax-sized cargoes, market sources reported Wednesday.
A source at Socar confirmed that the company had fixed 80,000 mt on the Eagle Tacoma loading June 12-13 for a Cross-Mediterranean voyage at a rate of w200. Rates were assessed Tuesday at w305, Platts data shows Sources attributed the decline to a forthcoming decline in demand for
aframaxes from Ceyhan.
"There will be less aframaxes required next month," said the source at
Socar, adding that "14 aframaxes will be required from Ceyhan while about 14 cargoes will be suezmax-size cargoes. Aframax [demand] will be less than half that of the last few months."
"Azeri production each month is 23 million-24 million barrels, of which 5 million-6 million barrels go on suezmaxes. About 18 million barrels are
therefore typically left to go on aframaxes, which means about 30 aframaxes
are[usually] required through the month," added a broker.
"As soon as this news broke, we started to see very low numbers," a further source added.
"In May, SOCAR loaded 30 aframax cargoes but in June this number will fall and the aframax market will be influenced dramatically," another source