VLCC spot rates fall back to Earth after September surge into stratosphere
- Baltic Exchange’s TD3 Middle East Gulf-China VLCC index dropped $6,594 per day on Tuesday, to $56,551 per day, down 41% from recent high on September 17 of $96,100 per day
- Breakwave cites importance of Chinese inventory restocking to spot rates in the coming weeks; focus is now on ‘Chinese procurement pace’
- BRS sees limits to downside given relatively lower modern tonnage availability in MEG and shorter position lists in US Gulf
The pullback from last month’s peak highlights the inherent fragility of the VLCC spot market, but there is still plenty of optimism — albeit more tempered — toward the back end of the fourth quarter
