Oil tanker rates hit new records; NAT, FRO, DHT jump to multi-year highs
Oct. 4, 2019 2:37 PM ET|
About: Nordic American Tankers Lim... (NAT)|
By: Carl Surran, SA News Editor
Freight rates to ship U.S. crude to Asia continue to surge, with costs to charter a supertanker rising to a record $12M yesterday, Reuters reports.
South Korea's top refiner, SK Energy, has conditionally booked the Pacific M supertanker to ship U.S. crude to the country in November at a record of $12.35M, just days after chartering the Maxim for a then-record $10M earlier in the week, according to the report.
Tanker rates already were rising after the Sept. 14 attacks on Saudi Arabia's oil facilities that temporarily cut Saudi oil production, and rates have jumped even more after the U.S. last week imposed sanctions on two units of China's COSCO, alleging involvement in ferrying crude out of Iran.
Shipping sector stocks are on the move, with some hitting YTD highs: NAT +16.7%, FRO +6.9%, DHT +4.5%, TNK +11.3%, STNG +7.1%, SALT +4.9%, EURN +3.3%, GOGL +3.6%, SB +6.9%, SBLK +2.9%.
Separately, Phillips 66 (PSX +1.5%) reportedly chartered the Very Large Crude Carrier Syfnos to ship U.S. crude to China, and chartered the Landbridge Glory to ship U.S. crude to South Korea next month for $10.4M.
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