In "Obscene" Move, Oil Tanker Rates Explode To Record Levels Amid Flurry Of Geopolitical Risks | WHAT REALLY HAPPENED

In "Obscene" Move, Oil Tanker Rates Explode To Record Levels Amid Flurry Of Geopolitical Risks

In a world where multiple-sigma events now happen with daily regularity, few people seemed to notice an unprecedented event taking place in the oil tanker industry, where spot charter contacts for very large crude carriers (VLCCs) exploded above $300,000 as the industry digested the fallout from the US focusing its spotlight on sanctions on oil, especially China's Cosco Shipping company, and from the latest security incident in the Middle East.

As Lloyd's List notes, the Baltic Exchange Dirty Tanker Index, which aggregates global shipbroking charter rates, reported that by Friday afternoon, rates for West Africa to China VLCC routes had almost doubled within a day to reach $278,057. Middle East Gulf to Singapore and China routes had reached $305,998 and $300,391 respectively, marking an almost 100% day-on-day increase.

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