Oil tanker returns hit low as cargo supply drops

An oil tanker (right) sails across Tokyo Bay as the Tokyo Bay Aqua-Line highway is seen in the background, in Kawasaki City, Kanagawa Prefecture, Japan. Returns for oil tankers hauling Middle East crude to Asia, the industry’s busiest trade route, reached the lowest level since August as the number of cargoes declined amid an ample supply of ships. Very large crude carriers are losing $6,761 daily on the benchmark Saudi Arabia-to-Japan voyage, more than Thursday’s $6,482, figures from the Baltic Exchange in London showed. The current return is the worst since August 31. Lower Middle East oil output reduced VLCC cargoes by as many as 12 a month, London-based shipbroker EA Gibson said in an e-mailed report. Still, the combined carrying capacity of the world VLCC fleet will expand 5.3% this year, below demand growth of 5.9%, according to Clarkson, the biggest shipbroker.