Shipping oil from Saudi to China hits $87K/day, highest in 2.5 years
The post Shipping oil from Saudi to China hits $87K/day, highest in 2.5 years appeared on BitcoinEthereumNews.com. Shipping costs for oil from Saudi Arabia to China just jumped to $87,000 a day, the highest rate in two and a half years, according to Bloomberg. That’s the current price tag for moving 2 million barrels on one of the world’s biggest tankers. It’s higher than rates seen earlier this year during the Middle East clashes, and it’s ripping through freight markets right now. Shipowners are pointing to two things. First, there’s a growing divide in the tanker fleet, vessels that comply with Western sanctions and those that don’t. Second, there’s straight-up rising demand. More barrels need to move, and fewer clean ships are available to carry them. That tight supply is pushing rates through the ceiling. Tankers fill up as production surges in Americas and Guyana Lars Barstad, the CEO of Frontline Plc, said last week that things are “quite exciting” for compliant crude exports and he’s seeing a lift in production from across the Americas. Lars said, “If you look at expectations for production, it looks constructive.” He added that long-haul shipments are getting stronger, which is helping drive prices higher. That demand is piling pressure on the limited number of non-sanctioned tankers left on the water. The oil’s coming from everywhere. Brazil pushed production toward 4 million barrels a day in July, the highest ever reported. In Alberta, Canada hit a record for oil output in the same month. And Guyana, which didn’t even have a real presence in oil just a few years ago, is on track to pump close to 1 million barrels a day by October. The supply flood hasn’t really hit near-term prices, but the pressure is showing up in Brent-Dubai spreads. Brent swaps are trading at a wide discount to the Dubai benchmark as barrels from the Atlantic Basin keep piling…
The post Shipping oil from Saudi to China hits $87K/day, highest in 2.5 years appeared on BitcoinEthereumNews.com.
Shipping costs for oil from Saudi Arabia to China just jumped to $87,000 a day, the highest rate in two and a half years, according to Bloomberg. That’s the current price tag for moving 2 million barrels on one of the world’s biggest tankers. It’s higher than rates seen earlier this year during the Middle East clashes, and it’s ripping through freight markets right now. Shipowners are pointing to two things. First, there’s a growing divide in the tanker fleet, vessels that comply with Western sanctions and those that don’t. Second, there’s straight-up rising demand. More barrels need to move, and fewer clean ships are available to carry them. That tight supply is pushing rates through the ceiling. Tankers fill up as production surges in Americas and Guyana Lars Barstad, the CEO of Frontline Plc, said last week that things are “quite exciting” for compliant crude exports and he’s seeing a lift in production from across the Americas. Lars said, “If you look at expectations for production, it looks constructive.” He added that long-haul shipments are getting stronger, which is helping drive prices higher. That demand is piling pressure on the limited number of non-sanctioned tankers left on the water. The oil’s coming from everywhere. Brazil pushed production toward 4 million barrels a day in July, the highest ever reported. In Alberta, Canada hit a record for oil output in the same month. And Guyana, which didn’t even have a real presence in oil just a few years ago, is on track to pump close to 1 million barrels a day by October. The supply flood hasn’t really hit near-term prices, but the pressure is showing up in Brent-Dubai spreads. Brent swaps are trading at a wide discount to the Dubai benchmark as barrels from the Atlantic Basin keep piling…
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