VLCC Rates Hit Record $1.27 Million a Day as Oman Transfer Capacity Maxes Out
Capacity for ship-to-ship transfers of crude oil off the coast of Oman has reached its limits after Saudi Arabia diverted its flows from the port of Yanbu amid Houthi attacks, Reuters has reported, citing unnamed trading sources and analysts. The report said Saudi Arabia has sold some 60 million barrels of crude, to be shipped from the Gulf of Oman after being transferred from smaller carriers to…
VLCC rates have surged to a record $1.27 million per day due to a shortage of tanker availability, according to Reuters. The price spike comes as Oman's transfer capacity hits its maximum following Saudi Arabia's diversion of crude flows from the port of Yanbu due to Houthi attacks. Saudi Arabia has shipped around 60 million barrels of crude from the Gulf of Oman, requiring 40 additional very large crude carriers (VLCCs) for shuttle runs.
This surge in demand has led to a shortage of 20 tankers waiting in the Red Sea for the port of Yanbu to reopen. As a result, VLCC freight rates have reached an all-time high of $1.27 million per day.
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