Summer Dreams for Suezmaxes

The languishing West African Suezmax trade saw a much needed boost in activity last month. The upswing can likely be credited to the recent collapse in the West Texas Intermediate (WTI) and Brent crude oil price spread. Freight rates for the West African Suezmax market were once a stalwart of the tanker business, but the recent tumult of the of US East Coast refining complex introduced an unforeseen amount of risk to this trade. First, the outright closures of refineries reduced the call on foreign imports from West Africa. This development was later compounded by the rapid increase of US domestic crude oil production: another death knell to the Bonny- Philadelphia trade on 130kt, otherwise known as TD5. Download here