The oversupply of supertankers competing to collect consignments of Middle East crude oil was unchanged in the past week.
The oversupply of supertankers competing to collect consignments of Middle East crude oil was unchanged in the past week amid signs Saudi Arabia has ships that are surplus to requirements. There are 25 percent more very large crude carriers, or VLCCs, for hire than cargoes needing to be collected over the next 30 days, according to the median estimate of four shipbrokers, one shipowner, one trader and one derivatives broker surveyed by Bloomberg News today. That's unchanged from March 9, when there were 10 respondents.
Saudi Arabia cut crude output by 18 percent to 7.86 million barrels a day since July, leading efforts by the Organization of Petroleum Exporting Countries to boost the price of oil. That's the fastest pace in a seven-month period since at least 1988, when the data were gathered yearly.
Vela International Marine Ltd., the shipping unit of state- owned Saudi Aramco, leased out at least two tankers last week that would normally be deployed shipping the nation's oil, according to shipbrokers including Oslo-based SeaLeague AS and RS Platou AS.
An official in Vela's press office declined to comment when contacted by e-mail today.
VLCCs that ship Saudi Arabian oil to Japan, the world's benchmark voyage, are earning $28,839 a day according to data from the London-based Baltic Exchange, a decline of 37 percent since Feb. 13. Globally they're making $28,136 a day.
Of the seven respondents, two estimated supply increased relative to cargoes, three said it fell, and two said it didn't change.