Global oil freight rates continue upward march; OXY charters VLCC for $15.8M
Oct. 11, 2019 6:30 PM ET|
About: Occidental Petroleum Corpor... (OXY)|
By: Carl Surran, SA News Editor
Rates to charter oil tankers from the Arab Gulf, U.K. and the U.S. Gulf Coast to Asia surged to fresh highs today, Reuters reports, as global oil traders continue to cope with a tanker shortage in the aftermath of U.S. sanctions on China's Cosco.
Occidental Petroleum (NYSE:OXY) tentatively chartered the Very Large Crude Carrier Hong Kong Spirit to ship U.S. crude from the Gulf Coast to Asia next month for a record $15.8M this week, according to the report.
Ship brokers say bids today for chartering VLCCs from the Gulf Coast to Asia were assessed as high as $20M, although no charters actually were booked at that price.
Freight rates for supertankers from the Louisiana Offshore Oil Port to Singapore reportedly climbed to a record $9.28/bbl this week, while rates to charter supertankers from Rotterdam to Singapore climbed to a 10-year high equal to $5.12/bbl.
In the Arab Gulf, Indian Oil Corp. reportedly was offered rates as high as $16M to ship Iraqi Basra crude to Chennai, India.
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