Mediterranean, Black Sea FOB crude oil markets plunge as freight rates soar
Rising products prices in the Mediterranean and Black Sea over the last week have pressed 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 price cut to the Mediterranean Dated Strip, the most affordable level it has actually been versus the 13-28 day Dated Brent strip because early July.
The drop in Azeri Light FOB differentials has been even more obvious, with Aframax Azeri freights, FOB basis the Georgian port of Supsa, dropping to their cheapest degrees in the background of the Platts evaluation, which goes back to mid-2010.
Platts determines FOB worths for lots of local crudes as a freight netback to a central Mediterranean, CIF supplied rate.
Investors said that the recent rise in freight prices along the Black Sea-Mediterranean and also Cross-Mediterranean paths had actually seen FOB rates plummet in the area, also as CIF and also CFR markets end up being a lot more popular.
" Azeri is doing ALRIGHT due to the fact that it is [valued on a delivered basis] and also freight is high," a crude investor claimed. "Purchasers choose to stick to [provided] barrels in this atmosphere."
Delays in the Turkish Straits have actually left a very limited tonnage listing for charterers to pick from in both the Mediterranean and also the Black Sea, according to shipping resources.
Freight rates on the Black Sea-Med course, basis 80,000 mt, leapt by over Worldscale 100 in just over a week, from w122.5 Tuesday November 11 to w227.5 Wednesday November 19.
website and also fog has actually brought about longer transportation times for tankers through the Turkish Straits, a typical worry in the area throughout the cold weather.
Platts assessed the delays at 5 days Northbound as well as five days Southbound Wednesday.
The number of ships held up in the Straits has caused a tightening of the Black Sea and also Mediterranean placement checklists.
"The ships are accumulating in the Straits, the checklist of ships waiting there is already lengthy and also is expanding. If you intend to reach the Black Sea you need to choose ships up previously," stated 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 price cut to the Mediterranean Dated Strip, the most affordable level it has actually been versus the 13-28 day Dated Brent strip because early July.
The drop in Azeri Light FOB differentials has been even more obvious, with Aframax Azeri freights, FOB basis the Georgian port of Supsa, dropping to their cheapest degrees in the background of the Platts evaluation, which goes back to mid-2010.
Platts determines FOB worths for lots of local crudes as a freight netback to a central Mediterranean, CIF supplied rate.
Investors said that the recent rise in freight prices along the Black Sea-Mediterranean and also Cross-Mediterranean paths had actually seen FOB rates plummet in the area, also as CIF and also CFR markets end up being a lot more popular.
" Azeri is doing ALRIGHT due to the fact that it is [valued on a delivered basis] and also freight is high," a crude investor claimed. "Purchasers choose to stick to [provided] barrels in this atmosphere."
Delays in the Turkish Straits have actually left a very limited tonnage listing for charterers to pick from in both the Mediterranean and also the Black Sea, according to shipping resources.
Freight rates on the Black Sea-Med course, basis 80,000 mt, leapt by over Worldscale 100 in just over a week, from w122.5 Tuesday November 11 to w227.5 Wednesday November 19.
website and also fog has actually brought about longer transportation times for tankers through the Turkish Straits, a typical worry in the area throughout the cold weather.
Platts assessed the delays at 5 days Northbound as well as five days Southbound Wednesday.
The number of ships held up in the Straits has caused a tightening of the Black Sea and also Mediterranean placement checklists.
"The ships are accumulating in the Straits, the checklist of ships waiting there is already lengthy and also is expanding. If you intend to reach the Black Sea you need to choose ships up previously," stated a charterer.
