Supertanker Demand Is ‘Soft’ in Middle East Gulf, Fearnleys Says

Rikard Vabo and Lars Erich Nilsen, analysts at investment bank Fearnley Fonds ASA in Oslo, comment on demand for very large crude carriers that haul 2 million- barrel oil cargoes. MEG refers to the Middle East Gulf. Clarkson Plc is the world’s largest shipbroker.
The analysts commented in a report e-mailed today.
“The trend is currently soft in the MEG, but there is uncertainty on the direction.”
Owners “will wait for additional cargoes returning to the market this week post-Thanksgiving. This could have an effect on the MEG market eventually, however a significant portion of year-end cargoes will need to flow into the market this week as 101 VLCCs are expected to enter the MEG the next 30 days versus 90 the previous week, according to Clarkson.
‘‘In comparison, we have seen 89 VLCC fixtures in the MEG the last 30 days.’’