1. Average Suezmax spot earnings rose by 24% m-o-m to reach $13,508/day in May, buoyed by a rise in earnings towards the end of the month amidst heightened activity in the Med/Black Sea. However, average Suezmax spot earnings in May remained 15% below the full year average in 2017, and earnings have since softened further in June. 2. Growth in Suezmax dwt demand is expected to slow to 3.5% this year, on the back of a variety of limiting factors. Falling Venezuelan exports are expected to limit crude trade on some ex-Caribs routes, whilst the US decision to re-impose secondary economic sanctions on Iran is likely to impact exports from the country in the full year, particularly on routes into Europe. Crude shipments to the US are also projected to fall notably this year, which could impact Suezmax demand on some ex-WAF and ex-Caribs routes. However, some support for crude trade on Suezmaxes this year is expected to be provided from substantial growth in US crude exports, particularly on long-haul routes, whilst crude shipments from WAF are also expected to increase.
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