Tanker Market Report - Jul 2008

Despite the slow market observed in the first two weeks of August, July was a spectacular month for the tanker market. The VLCC TCE has averaged $120k since May’08. There might be some pressure on the rates because of the routine maintenance season for the refineries till September. However, we feel that the rates will remain range bound at these levels as the global oil prices have softened and Asian economies especially India and China are set to maintain decent growth rates through the end of 2008 and 1st half of 2009. In the coming weeks, the Suezmax and especially the Aframax markets seem prone to weakness due to dearth of requirements and ample available tonnage.