September was the second month of halted US crude exports from Louisiana to China due to higher VLCC freight rates, a narrower Dubai/LOOP Sour spread and uncertainty over possible trade tariffs imposed by China on US crude. In September, no cargoes departed Louisiana for China, according to cFlow, S&P Global Platts trade-flow software. Additionally, no cargoes left Louisiana for China in August, according to export data from S&P Global Platts Analytics and US Customs. Rising VLCC freight rates from the US Gulf Coast to China may have contributed to the lack of cargoes flowing that way. Average VLCC rates for October to date reached $3.39/b, up from an average rate of $2.45/b in September and $2.37/b in August, according to Platts data. In contrast, VLCC freight rates from the USGC to Singapore have also increased in recent months, but have not hit the high levels of the China route. Average VLCC rates for October to date on the Singapore route reached $2.91/b, up from an average rate of $1.98/b in September and $1.89/b in August. Freight rates for VLCCs carrying cargoes from the USGC and Caribbean have soared over the past two weeks on a combination of increased interest from… continue reading
Continue reading In the LOOP: China export cargoes from Louisiana dry up. This article appeared first on CTRM Center.
Source: CTRM Center