Asian flows fuel shipping rates and displace US crude imports

Rate recovery: Chartering rates for Suezmaxes and very large crude carriers have recovered rapidly in recent weeks after plunging to their lowest in more than a year in June. – EPA

NEW YORK: Robust Asian demand for West African crude is fuelling a worldwide surge in shipping rates for the largest oil tankers that is being felt from Houston to Singapore.

Chartering rates for Suezmaxes and very large crude carriers (VLCCs) have recovered rapidly in recent weeks after plunging to their lowest in more than a year in June. The spike in rates comes as Asian refiners return to the market after a seasonal turnaround period, and as several key streams of West African crude are finally loading for export after supplies were constrained because of pipeline disruptions in Nigeria.