The tanker market showed mixed performance during the month of May, but June is expected to be a completely different story. In its latest monthly report, OPEC said that dirty tanker spot freight rates saw mixed movements in May. Aframax and Suezmax rates experienced declines, while VLCC rates were flat to slightly lower. Suezmax spot freight rates on the US Gulf Coast to Europe route declined 22%, m-o-m, amid limited enquiries. In the Aframax market, spot freight rates on the Mediterranean-to-Northwest Europe route fell 20%, m-o-m, weighed down by softening supply-demand fundamentals.

On the Middle East-to-West and West Africa-to-East routes, VLCC spot rates were unchanged, m-o-m, while rates on the Middle East-to-East route slipped 2%. Ample availability combined with limited long-haul demand eroded market sentiment over most of the month. Spot rates in the clean tanker market were also mixed. East of Suez rates rose 4%, m-o-m, as tonnage lists tightened. West of Suez rates declined by 9%, m-o-m.

Dirty tanker freight rates

Very large crude carriers (VLCC)

VLCC spot freight rates were broadly stable, m-o-m, in May, although marginally softer rates on the Middle…