VLCC Rates Hit Record $1.27 Million a Day
Capacity for ship-to-ship transfers of crude oil off the coast of Oman has reached its limits after Saudi Arabia diverted its flows from the port of Yanbu amid Houthi attacks, Reuters has reported, citing unnamed trading sources and analysts. The report said Saudi Arabia has sold some 60 million bar
Source: OilPrice.com
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DW NOTE
The Strait of Hormuz has been effectively closed since February 28, so this is the second-order rent extraction: ship-to-ship transfers at Oman are now the bottleneck, and tanker owners are charging $1.27 million a day to sit offshore and pump oil from one hull to another. That rate isn't market volatility — it's the toll for circumventing a naval blockade with someone else's balance sheet.