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VLCC rates prevented from going up

The basic conditions for the VLCC tankers, for instance the transportation of the increasing amounts of oil, could justify higher freight rates. Yet the opposite seems to be the case, with the current rates at a lower level that in the first six months of 2012, according to new report by McQuilling.

The VLCC rates remain low in spite of a record high production of oil. In the United States, oil production in September was at 6.5 million barrels per day, the highest level since the late 1990s. According to a new rapport by McQuilling Services, the desire for American self-sufficiency in oil production will not be met anytime soon, which means the market should be big enough for the VLCC’s.

“In the backdrop of this development, there have been discussions about the US becoming the world's largest crude oil producer by 2020, which are reinforcing the elusive dream of energy independence.  In line with this, during the first nine months of 2012, total crude oil imports have declined by 3% compared to 2011,” says the McQuilling report.

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