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Oil Tanker Rates Soar To Astronomical Levels

by News Desk
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  • Extremely high oil tanker rates weigh heavily on physical crude oil trading.
  • On Monday, the benchmark major crude oil trading route reached $100,000 per day.
  • However, lower spot price premiums for various crudes could offset some of the high transportation costs, traders told Bloomberg.


The surge in tanker rates weighed heavily on oil trades, two weeks ahead of the biggest uncertainty in physical oil flows this year – the EU embargo on Russian oil imports and the resulting price cap for Russian oil. I’m here.

According to Bloomberg, on Monday, benchmark major crude oil trading routes reached $100,000 per day. EstimateThis is the highest crude tanker rate since early 2020, just before Covid eclipsed global oil demand.

Crude shipping costs are much higher this year because EU sanctions on Russian exports have lengthened the voyages many tankers are now making. Russian oil cargo from Russian Baltic ports takes months, not just a week, to travel from Russian Baltic ports to Rotterdam, the Netherlands, but to Asia, which is now Moscow’s main export market. moving.

However, lower spot price premiums for various crudes could offset some of the high transportation costs, traders told Bloomberg.

The EU embargo and price cap, which is due to come into force on December 5th, along with skyrocketing freight rates, will add to the uncertainty for oil buyers. Pricing has not yet been announced, but otherwise the cargo would be unable to use Western ocean shipping services, including finance and insurance.

Some analysts not enough Non-Western tankers available to bring the current amount of Russian oil to market. However, other analysts point out: Increase in ship purchases From an unknown entity in recent weeks in preparation for what they believe Russia is copying Iran’s and Venezuela’s oil export tactics after the US sanctioned oil exports in 2018 and 2019 respectively.

By Tsvetana Paraskova for Oilprice.com

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