1. After six consecutive months in which average Aframax spot earnings fell m-o-m, in May earnings firmed by 44% m-o-m to $10,005/day. However, the Aframax market remains under pressure, with earnings in May still 28% lower than average spot earnings in full year 2017. 2. Aframax dwt demand is currently projected to grow by 2.7% in 2018. Crude trade on Aframaxes on intra-Asian routes is expected to expand firmly, supported by rising exports from Far East Russia. Shipments of Russian crude to some Asian countries have risen strongly in the year so far, with exports to South Korea up by over 80% y-o-y in January-May, and firm growth is projected to continue in the full year. Elsewhere, rising US crude exports are expected to support growth in Aframax demand (as is the case in other size sectors) this year, whilst crude shipments on ex-Med/Black Sea routes are also projected to grow. However, the anticipated continuation of the decline in Venezuelan crude exports is expected to limit growth in crude trade on Aframaxes in the full year.
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