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Platou Markets: MR tanker rates increasing

As a result of e.g. low levels of American oil inventories and a greater demand for oil in December for especially heating, a lot of things suggest that MR rates are increasing, according to the market analyst bureau Platou.

Historically, December is a strong month for MR tankers with an increased demand for oil for e.g. heating and the fact that rougher weather conditions often disturb and limit the supply of ships. With a few exceptions, the average rates have been 32 percent higher in December than in November for the last 15 years and a lot of things indicate that the situation will repeat itself in the shape of sizeable rate increases, the analysis house Platou assesses.

Among other things, Platou bases its assumptions of a MR rate jump in the American oil inventories being at a very low level concerning both gasoline and distillate fuel oil which are at their lowest levels for five years. For example, current gasoline stocks are 15 % below their level in the corresponding week last year. On the basis of this, Platou assesses that the average MR rate will be about USD 25,000 per day in December compared to USD 19,000 in November.

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