Times are getting tougher by the day for oil tanker owners.
With too many vessels to haul fuel, losses for supertankers on a benchmark Middle East-to-China route deepened to $6,779 a day on Tuesday. That’s the weakest earnings since at least 2017 and effectively means vessel owners would be subsidizing the transport of oil on that route.
Tanker rates have been hit by a host of factors. Firstly, the Organization of Petroleum Exporting Countries and its allies are withholding near-record amounts of oil, and surprised the market last week by extending that strategy into April. There’s also an oversupply of ships, which has been compounded by the unwinding of volumes of crude stored at sea.
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