Oil/Natgas -Geo-political tension has been driving the oil market this week. Diplomatic relations between Iran and Britain continue to deteriorate and oil prices are responding to the tension, closing yesterday at the highest level since September 2006 and continuing to move up this morning.
Wet -The VLCC market has not been as strong this week as last week, but rates in the Persian Gulf remain at unusually high levels for this time of year. In addition, VLCC rates in West Africa have shown consistent firming this week, catching up to a hot Suezmax market in the region. Suezmax strength is attributable to a tie up of tonnage in Europe stemming from a port strike in France, which has driven up both Suezmax and Aframax rate to year to date highs.
Dry -Strength in the Capesize market continues to underpin the dry bulk industry, with rate for all vessel classes holding firm at 28 month highs. Spot activity levels remain strong against a thinning tonnage supply given the amount of time charters taking place however equities have been trading lower the past few days.