A surplus of supertankers competing to deliver two million-barrel cargoes of Middle East crude was unchanged after a week in which oil companies hired more than half the ships they will need for August.
There are 20 per cent more very large crude carriers, or VLCCs, for hire over the next 30 days than there are cargoes that need to be shipped, according to the median estimate of five shipbrokers, one trader and one owner surveyed by Bloomberg yesterday. That's the same as last week.
The surplus has cut owners' earnings to $10,716 (Dh33,359) a day on the industry-benchmark Saudi Arabia to Japan voyage, according to July 31 data from the Baltic Exchange.
The fleet of VLCCs has expanded six per cent this year to 529 ships while Middle East producers in the Organisation of Petroleum Exporting Countries cut combined output by a 3.7 per cent to 19.3 million barrels a day.
"The oversupply of vessels is having an impact," Petter Narvestad, an analyst at Fondsfinans in Oslo, said.
Oil companies and traders concluded about 50 rentals last week, he said. There are normally about 90 such bookings a month.
There are 20 per cent more very large crude carriers, or VLCCs, for hire over the next 30 days than there are cargoes that need to be shipped, according to the median estimate of five shipbrokers, one trader and one owner surveyed by Bloomberg yesterday. That's the same as last week.
The surplus has cut owners' earnings to $10,716 (Dh33,359) a day on the industry-benchmark Saudi Arabia to Japan voyage, according to July 31 data from the Baltic Exchange.
The fleet of VLCCs has expanded six per cent this year to 529 ships while Middle East producers in the Organisation of Petroleum Exporting Countries cut combined output by a 3.7 per cent to 19.3 million barrels a day.
"The oversupply of vessels is having an impact," Petter Narvestad, an analyst at Fondsfinans in Oslo, said.
Oil companies and traders concluded about 50 rentals last week, he said. There are normally about 90 such bookings a month.
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