OREANDA-NEWS. Freight rates for crude tankers moving out of the Americas are poised to stay elevated in the second half of 2015, with longer routes and rising world oil consumption boosting demand for VLCC and Aframax fleets that will see minimal expansion in the next six months.

Opec's policy of sustaining production to protect market share should continue to support the crude tanker market in the Americas. Strong crude exports from the Middle East will absorb available VLCC tonnage and maintain elevated rates for very large crude carriers departing the Caribbean and Brazil. The cost of very large crude carrier freight on the benchmark Caribbean-Singapore route hit $7.95mn lumpsum, its highest level in at least three years, on 29 January.

Buyers in Asia-Pacific, especially China, are expected to continue capitalizing on lower crude prices and buying crude from diverse and distant sources.

In the Americas Aframax market, strong rates in the first half of 2015 are expected to extend to the second. Analysts expect volatility to continue, but average rates to be above 2014 levels. But switching of smaller ships into carrying crude could place some downward pressure on rates, MJLF head of research Court Smith cautioned. "One bearish factor is the 18-20 long-range 2 (LR2) vessels that have moved into the dirty trade."

Condensate exports and movement of dirty cargoes to Canada, while not significant overall, remove excess capacity for Aframax tankers and are supporting rates into the second half of 2015, shipbrokers said.