Lower Ship-Fuel Prices Said by Dahlman Rose to Aid Tanker Rates

Lower prices for ship fuel, or bunkers, are supporting oil-tanker earnings, according to U.S. investment bank Dahlman Rose & Co.

Hire rates for very large crude carriers, the biggest vessels hauling the commodity, rose “significantly” for cargoes loading in West Africa, New York-based analyst Omar Nokta said in a report today. The daily cost of chartering a VLCC to carry crude from the region to the U.S. Gulf Coast gained about $10,500 a day in the past week to $50,000, he said.

Daily VLCC rates for cargoes to be carried east from the Persian Gulf climbed $3,500 a day to reach $40,000, boosted by a drop in fuel prices of about $60 a metric ton since the end of April, according to Nokta. Each VLCC can hold 2 million barrels of crude.

To contact the reporter on this story: Rob Sheridan in London at rsheridan6@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.