Despite the decline of tanker fixtures in the Middle East market, VLCC rates remained in positive territory through much of the past week, as the market continued to react to narrowing fundamentals and sentiment remained positive as participants expect a further narrowing going forward, while a modest paring occurred on Friday. In its latest weekly report, shipbroker Charles R. Weber, said that Indeed, the gains came despite a slowing of demand as charterers were slow in progressing into October dates and demand in the West Africa market eased. There were 20 fixtures reported in the Middle East market, representing a 33% w/w decline. Meanwhile, in the West Africa market, just three fixtures were reported, off from eight last week.

According to CR Weber, "the softer demand in West Africa boosted Middle East availability levels through the November program's first decade as draws will now likely come from subsequent decades. Some previously hidden positions also appeared and contributed to surplus availability. We presently estimate that there will be a surplus of 10 units in the period; previously, the supply/demand view raised the potential of zero surplus units. The revised estimate remains 40% below the surplus seen at the conclusion of the October program, however; and the likelihood is that as November progresses past the first decade, the surplus will continue to decline. This follows a rise in long‐ haul fixtures in recent months, for which the absence of the performing units has yet to be fully observed in Middle East positions (relative to previous average turnaround time). As such, the market remains poised for directional gains through the remainder of Q4, though during the upcoming week rates could stabilize. Historically, a surplus of 10 units has guided AG‐FEAST TCEs to around $33,100/day – which compares with ~$32,145/day presently. Past next week, as charterers progress further into the November program, we expect that a fresh tightening of fundamentals will positively influence rates, accordingly".

It added that "rates on the AG‐FEAST routes gained 2.5 points to conclude at ws67.5. Corresponding TCEs rose 7% to ~$31,767/day. Rates to the USG via the Cape gained one point to conclude at ws29. Triangulated AG‐USG/CBS‐SPORE/AG TCEs rose 6% to ~$33,512/day".

In the Atlantic Basin, rates on the WAFR‐FEAST route posted modest further gains from last Friday's jump to ws70 but subsequently these pared back with the route concluding unchanged. The route's TCE concludes at ~$32,232/day, off 1% due to higher bunker prices.

Rates in the Atlantic Americas continued to rise on the back of last week's demand surge and a sustaining of elevated demand levels this week. The CBS‐SPORE route added $150k to conclude at $4.40m lump sum.

Meanwhile, in the Suezmax tanker market, CR Weber said that "rates in the West Africa Suezmax market remained at strength this week following last week's demand surge and as availability replenishment is declining. Suezmaxes competing with Aframaxes in the Black Sea and VLCCs in the Middle East added to positive sentiment, as has a slowing of VLCC coverage during November's second decade, which raises the specter of forward demand gains for Suezmaxes once charterers progress on dates. Rates on the WAFR‐UKC route added 10 points to conclude at five‐month high of ws87.5", the shipbroker concluded.