Oil tanker operators are reaping record profits after nearly doubling the hire cost of vessels going through the Strait of Hormuz and wider Gulf region this week on rising demand as traffic
Oil tanker operators are reaping record profits after nearly doubling the hire cost of vessels going through the Strait of Hormuz and wider Gulf region this week on rising demand as traffic through the waterway slowly picks up, according to shipping data and sources.
Traffic through the vital strait has been modest since Iran lifted its effective blockade last week after agreeing to a 60-day ceasefire with the U.S., as talks on a permanent deal to end their war continue.
The number of ships going through Hormuz is a fraction of the daily average of 125 before the conflict began on February 28. As many as 100 tankers remain stuck inside the Gulf with cargoes onboard, according to market estimates, adding to a shortage of available vessels as Middle Eastern crude producers ramp up exports.
Rates for hiring a tanker outside the Strait of Hormuz have jumped to $190,500 a day from $106,500 a week ago, according to ship brokers and industry sources, with those hired outside the Gulf region also surging.
Average daily earnings for very large crude carriers (VLCCs) have jumped to a record of nearly $470,000 a day for cargoes inside the Gulf that need to go
Content Original Link:
" target="_blank">
