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Qatar diplomatic row to impact VLCC market: Affinity

Qatar diplomatic row to impact VLCC market: Affinity
The ban of Qatar vessels from many ports in the Middle East region could impact the VLCC market according to Affinity Research.

Qatar has a crude oil output of around 600,000 bpd and in research note Affinity said that due to the small size of Qatari crude exports shipments were often co-loaded on tankers with other regional cargoes. “Given the current political situation, this process would be disrupted and has already become an issue for operators in the region,” Affinity said.

It noted that VLCC due to load a partial cargo in Qatar and then the remainder in UAE was switched to loading a full cargo in Qatar to avoid the fallout of the new vessel bans.

“Further cargoes are already fixed with similar loading plans, and discussions are underway to find alternative solutions,” the report said. These plans could involve splitting cargoes onto smaller suezmax and aframax vessels.

“This would have knock-ons for the rest of the fleet markets, the notable casualty being the VLCC market, which would see fewer available cargoes in the region,” Affinity concluded.