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Sovcomflot: spot spike nice but sustainable rates more important

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TradeWinds

Sovcomflot (SCF Group) CFO Nikolay Kolesnikov believes long-term sustainability of tanker rates is more important to the company than any short-lived spikes.

October saw a perfect storm of Middle East tanker attacks, US sanctions and scrubber retrofittings briefly drive up spot numbers above $300,000 for VLCCs on subjects.

"We had an eventful period at the end of the third quarter - disruptions that had a major impact on the crude tanker side and which were favourable to shipowners," the finance chief told TradeWinds.

"But as we've said before, we see a very healthy supply-demand balance across most tanker segments."

The spike was "most pronounced" in the VLCC sector, he added, but the company's only two ships of that size are chartered long-term.