Frontline Back in Black on Chinese Oil Demand: Freight Markets
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Frontline Ltd., the world’s biggest supertanker operator, may return to profit this quarter after its biggest loss since 2002 as oil demand from China curbs a glut of vessels that sent freight costs to a 13-month low.
Daily returns on the benchmark Middle East-to-Asia route rose sixfold to $42,726 in a month as oil buyers booked the most vessels since at least 2005, according to data from the Baltic Exchange and Galbraith’s Ltd., a shipbroker in London. Traders of forward freight agreements, used to speculate or hedge, were anticipating rates of $17,285 as recently as three weeks ago.