Middle East Oil Crisis Sends Supertanker Prices to Record Highs
Demand for tankers from Middle Eastern oil producers has pushed prices to an all-time high, the Financial Times reported today, saying both new and second-hand very large crude carriers reached prices of over $130 million in the second quarter of the year. Citing data from shipbroking company Braemar, the FT also said the prices for chartering a supertanker for a year have also hit the highest on…
The Middle East oil crisis has resulted in supertanker prices reaching record highs, according to the Financial Times. Both new and second-hand very large crude carriers have been sold for over $130 million in the second quarter of the year, reported Braemar shipbroking company data. Braemar's head of sales and purchase, David Holland, explained that physical control of assets is crucial for some Middle Eastern exporters.
This demand surge is caused by oil-producing countries opting to utilize their own tanker fleet amid concerns over safety in the Strait of Hormuz. Earlier this month, ADNOC, the state-owned oil company of the United Arab Emirates, acquired six supertankers and five very large gas carriers for $1.3 billion each, immediately deploying them upon arrival.
ADNOC and Kuwait Petroleum, another state oil company, have started using shuttles to transfer their oil to waiting tankers in the Gulf of Oman. The UAE’s oil major also intends to make significant investments in second-hand vessels to aid Adnoc Group companies. Unlike the UAE, Iraq lacks its own fleet and must rely on international traders to transport crude.
Consequently, Iraq has had to offer substantial discounts to encourage buyers for the hazardous Hormuz passage.
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