Platts notes this week that freight rates for dirty tanker ships are rising.
Rates for tankers between the Far East and West Africa are at their highest level since November 2012.
Asia to Africa is a long shipping route. Usually, prices for these vessels rise when to-Asia shipping demand increases from locations closer to the Orient.
In the current case, shipping contacts point to increased activity out of the Persian Gulf. Which implies that Asian crude demand is picking up.
This is interesting in concert with other bull signals we’ve seen out of Asia lately. Demand for steel-making metals has also seen a significant rise in that part of the world.
Even as concerns emerge about the U.S. economic recovery, it appears Asia may the one going stronger than many observers expect. Could be an unexpected lift for energy and metals.
Here’s to demand, crude or otherwise,
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