Strengthening naphtha demand from Asian petrochemical plants is boosting charter rates for product tankers hauling the feedstock, Morgan Stanley analyst Fotis Giannakoulis said in a report.
Long-Range 1 vessels shipping the cargo to Asia from the Middle East are earning almost $14,000 a day compared with $5,214 at the end of March, according to data from New York based shipbroker Poten & Partners.
The ships may also start making longer voyages should European oil refineries maintain output cuts as that could spur an increase in diesel cargoes from Russia, Giannakoulis said.
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