Tankers: Baltic-UKC Aframax route hits three-month high on demand

The cost of taking crude oil on the Baltic to UK Continent route on Aframax vessels has reached a three-month high due to stronger demand, sources said.

S&P Global Platts assessed the Baltic to UK Continent Aframax route, basis 100,000 mt, at $6.34/mt on Thursday, the highest in over three months. The last time it was assessed higher was May 26 at $6.69/mt.

Prices have strengthened due to a combination of stronger demand from charterers in the North and Baltic seas, which has run down the position list in the region, sources said.

Exports of Urals crude rose in Primorsk, Russia, by 400,000 mt in September now that maintenance work has been completed on the crude pipeline which feeds the Primorsk crude export terminal.

Shipowners are also expected to start amassing their ice-class vessels in the North and Baltic seas in the coming months ahead of winter, where ice-restrictions dictate which vessels can load in the Baltic region, sources said.