Tanker rates soar by 576% since year’s start amid sanctions against Russia
The publication states the run-up in supertanker bookings came as US penalties on the oil exports of Russia’s Rosneft and Lukoil took effect on Friday, which has forced buyers to turn to other suppliers.
The cost of hiring a supertanker (VLCC) for transporting oil from the Middle East to China has soared by 576% this year amid sanctions against Russia, reaching almost $137,000 per day, Bloomberg reported.
According to the agency, this is the highest figure since 2020. The publication states the run-up in supertanker bookings came as US penalties on the oil exports of Russia’s Rosneft and Lukoil took effect on Friday, which has forced buyers (especially those in India and China) to turn to other suppliers.
Omar Nokta, an analyst at the American investment firm Jefferies LLC, noted that the increase in demand for shipping also coincided with rising oil production in the US and OPEC+ countries, which includes Russia, Saudi Arabia, Iraq, the UAE, Kazakhstan, Algeria, Oman, and Kuwait.
It was noted that last week, approximately 10 vessels were chartered to transport oil from the Middle East in late November and December.
Ioannis Papadimitriou, a leading freight analyst at Vortexa, noted that Suezmax-class tankers, which carry about half the load of VLCCs, have moved into the Middle East to pick up cargoes on routes normally taken by VLCCs. Normally, a VLCC can carry up to 2 million barrels of oil.
On October 22, the US Department of the Treasury announced restrictions against Rosneft and Lukoil. At the same time, it also issued a number of general licenses, which allow for certain transactions with companies and their subsidiaries aimed until November 21. The financial department later extended the licenses, which allow for certain transactions with Lukoil concerning the company's foreign assets, from November 21 until December 13.
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The cost of hiring a supertanker (VLCC) for transporting oil from the Middle East to China has soared by 576% this year amid sanctions against Russia, reaching almost $137,000 per day, Bloomberg reported.
According to the agency, this is the highest figure since 2020. The publication states the run-up in supertanker bookings came as US penalties on the oil exports of Russia’s Rosneft and Lukoil took effect on Friday, which has forced buyers (especially those in India and China) to turn to other suppliers.
Omar Nokta, an analyst at the American investment firm Jefferies LLC, noted that the increase in demand for shipping also coincided with rising oil production in the US and OPEC+ countries, which includes Russia, Saudi Arabia, Iraq, the UAE, Kazakhstan, Algeria, Oman, and Kuwait.
It was noted that last week, approximately 10 vessels were chartered to transport oil from the Middle East in late November and December.
Ioannis Papadimitriou, a leading freight analyst at Vortexa, noted that Suezmax-class tankers, which carry about half the load of VLCCs, have moved into the Middle East to pick up cargoes on routes normally taken by VLCCs. Normally, a VLCC can carry up to 2 million barrels of oil.
On October 22, the US Department of the Treasury announced restrictions against Rosneft and Lukoil. At the same time, it also issued a number of general licenses, which allow for certain transactions with companies and their subsidiaries aimed until November 21. The financial department later extended the licenses, which allow for certain transactions with Lukoil concerning the company's foreign assets, from November 21 until December 13.
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