Increasing Chinese demand for oil could prevent a sharp decline of booming VLCC rates when Saudi Arabia cuts production next month, brokers say.
VLCC spot earnings have surged by 270% in the last week, leading to average earnings for the largest crude carriers outstripping suezmaxes and aframaxes, according to the BRS Group.
Earnings have been driven by a spike in demand for shipping Middle Eastern crude to China in advance of the Saudi cuts and a shortage of tonnage in the region.
