Global VLCC Spot Earnings Rise To $805,000/Day
Clarksons Research reported that crude tanker markets reached fresh all-time highs, with VLCCs averaging $805,000/day globally and freight rates now $20-45/bbl. Its weekly recap recorded further attacks on vessels, with at least 10 ships of 1.0m GT damaged in the Middle East in October so far, and said about 10m bpd of Middle Eastern crude appears to have crossed Hormuz in recent days, roughly 80% of it shuttled across via ship-to-ship transfer in the Gulf of Oman. It estimated that a cumulative ~2 billion bbl of crude have not transited Hormuz, with mitigating factors such as higher Atlantic supply and Yanbu exports limiting the net loss to about 1 billion bbl.
Why it matters: The record tanker earnings and the continued reliance on ship-to-ship transfers in the Gulf of Oman place the energy security theme at the centre of the disruption, since Middle Eastern crude and LPG flows remain below normal levels.