Middle East Oil Crisis Sends Supertanker Prices to Record Highs
Demand for tankers from Middle Eastern oil producers has pushed prices to an all-time high, the Financial Times reported today, saying both new and second-hand very large crude carriers reached prices of over $130 million in the second quarter of the year. Citing data from shipbroking company Braema
Source: OilPrice.com
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DW NOTE
The Strait of Hormuz has been effectively closed for four days — one ship through on August 16 versus the normal seventy-three. Supertanker day rates spike because the alternative route around Africa adds three weeks and burns fuel no one has margin to absorb. This isn't a supply shock you hedge with derivatives; it's a supply shock you survive by paying whatever the ship costs.