Diesel-loaded tankers stranded in Asia as buyers retreat


Diesel-loaded tankers stranded in Asia as buyers retreat

Several tankers carrying diesel fuel are floating off Taiwan and Southeast Asian waters as a steep fall in oil prices kept buyers at bay, trade and shipping sources said on December 7, helping push rates to their highest since January 2016.

With tanker rates also boosted by strong Chinese oil exports, it was a big relief for an industry that has been in the doldrums for the past three years.

About seven to nine long-range tankers carrying about 5 to 7 million barrels of diesel are currently floating off Taiwan waters largely due to a drop in bunker fuel demand from the South China Sea, several trade and shipping sources said.

“When flat prices started dropping rapidly, the buyers pulled back as they think prices have not bottomed out,” a Singapore-based middle distillates trader said. Read More

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