Asian Naphtha Demand Boosts Product Tankers, Morgan Stanley Says

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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