What’s happening? With almost a million barrels of Russian oil moving long-haul to Asia every day, instead of short haul trips to Europe, tankers are being employed for a longer duration. Persian Gulf-China VLCC freight has more than doubled from the abysmally low levels at the start of the year. Owners are now earning more than $40,000/day.
What’s next? The tanker freight outlook remains bullish due to the massive global oil trade disruption caused by the Ukraine war. While OPEC+ decided to cut oil production by 2 million b/d from next month, analysts consider the negative impact on shipping to be negative in the near-term as some of the member countries are unable to meet their quota targets. High gas prices are also resulting in a switchover to oil.
Post time: Oct-20-2022