Mediterranean, Black Sea FOB crude oil markets plunge as freight prices skyrocket
Skyrocketing products prices in the Mediterranean and also Black Sea over the last week have actually pushed FOB unrefined differentials in the area to multi-month lows.
On Wednesday, Aframax freights of CPC Blend, FOB basis the CPC Blend incurable North of Novorossiisk, were assessed at a $2.735/ barrel discount to the Mediterranean Dated Strip, the lowest level it has been versus the 13-28 day Dated Brent strip since early July.
The drop in Azeri Light FOB differentials has been much more noticable, with Aframax Azeri cargoes, FOB basis the Georgian port of Supsa, dropping to their lowest degrees in the history of the Platts analysis, which goes back to mid-2010.
Platts determines FOB worths for lots of regional crudes as a products netback to a main Mediterranean, CIF provided price.
Traders claimed that the current rise in freight rates along the Black Sea-Mediterranean and Cross-Mediterranean paths had seen FOB rates plunge in the area, even as CIF as well as CFR markets come to be extra popular.
" Azeri is doing ALRIGHT since it is [valued on a provided basis] as well as freight is high," a crude trader stated. "Buyers favor to stick with [supplied] barrels in this atmosphere."
Delays in the Turkish Straits have actually left an exceptionally restricted tonnage list for charterers to pick from in both the Mediterranean as well as the Black Sea, according to shipping resources.
Freight prices on the Black Sea-Med route, basis 80,000 mt, leapt by over Worldscale 100 in simply over a week, from w122.5 Tuesday November 11 to w227.5 Wednesday November 19.
Cold weather and also haze has led to longer transportation times for vessels via the Turkish Straits, a common worry in the area throughout the winter months.
Platts examined the hold-ups at five days Northbound and five days Southbound Wednesday.
The variety of ships stood up in the Straits has actually created a tightening up of the Black Sea and Mediterranean placement lists.
"The ships are stacking up in the Straits, the list of ships waiting there is already long as well as is expanding. If Mud Chemicals want to get to the Black Sea you require to select ships up previously," claimed a charterer.
On Wednesday, Aframax freights of CPC Blend, FOB basis the CPC Blend incurable North of Novorossiisk, were assessed at a $2.735/ barrel discount to the Mediterranean Dated Strip, the lowest level it has been versus the 13-28 day Dated Brent strip since early July.
The drop in Azeri Light FOB differentials has been much more noticable, with Aframax Azeri cargoes, FOB basis the Georgian port of Supsa, dropping to their lowest degrees in the history of the Platts analysis, which goes back to mid-2010.
Platts determines FOB worths for lots of regional crudes as a products netback to a main Mediterranean, CIF provided price.
Traders claimed that the current rise in freight rates along the Black Sea-Mediterranean and Cross-Mediterranean paths had seen FOB rates plunge in the area, even as CIF as well as CFR markets come to be extra popular.
" Azeri is doing ALRIGHT since it is [valued on a provided basis] as well as freight is high," a crude trader stated. "Buyers favor to stick with [supplied] barrels in this atmosphere."
Delays in the Turkish Straits have actually left an exceptionally restricted tonnage list for charterers to pick from in both the Mediterranean as well as the Black Sea, according to shipping resources.
Freight prices on the Black Sea-Med route, basis 80,000 mt, leapt by over Worldscale 100 in simply over a week, from w122.5 Tuesday November 11 to w227.5 Wednesday November 19.
Cold weather and also haze has led to longer transportation times for vessels via the Turkish Straits, a common worry in the area throughout the winter months.
Platts examined the hold-ups at five days Northbound and five days Southbound Wednesday.
The variety of ships stood up in the Straits has actually created a tightening up of the Black Sea and Mediterranean placement lists.
"The ships are stacking up in the Straits, the list of ships waiting there is already long as well as is expanding. If Mud Chemicals want to get to the Black Sea you require to select ships up previously," claimed a charterer.
