Freight
Freight - Clean Outlook
TC14 freight reached extreme heights of +300 WS on the back of tight inventory, and post storm recovery bookings leading to marginal supply within the market.
This had led to a number of significant closures of TC14 and gasoline outlets for USGC players into LATAM.
Prompting increased forward day supply and an outlook of subsiding prices from here on out.
Shifted E/W Gasoil flows can serve as a medium term means of support for TC14 freight upon demand from Europe via an open diesel arb.
Freight - Dirty Outlook
TD25 continues to be highly overvalued to the RBI. These values have been fundamentally supported by highly competitive USGC Light-Sweet grades in Europe.
Additionally, it should be noted that both VLCC and Suezmax classes appear relatively fairly valued within their relative basket.
